Mondelez uses AI to slash marketing costs by 50%, targets Super Bowl ads by 2027

Mondelez, the maker of Oreos and other popular snack brands, is using generative AI to slash marketing production costs by up to 50% and expects the technology to create short TV commercials by this holiday season. The company’s AI tool could be sophisticated enough to produce Super Bowl ads by 2027, potentially transforming how marquee advertising events are created—especially significant given that more than half of Super Bowl viewers say they enjoy the commercials more than the actual game.

What you should know: Mondelez is already testing AI-generated ads on social media platforms in the U.S. and plans to deploy them for Oreo product pages on Amazon and Walmart.
• The company isn’t yet incorporating human images in its AI-created advertisements but is expanding its AI capabilities rapidly.
• Jon Halvorson, Mondelez’s global senior vice president of consumer experience, told Reuters that the technology could be ready for Super Bowl commercial production by 2027.

The big picture: This represents a significant expansion of Mondelez’s AI experimentation beyond product development into high-stakes marketing territory.
• Last year, the company began using AI to help food scientists develop new flavors based on desired taste, aroma, and appearance profiles.
• The AI system not only suggests recipe ideas but also analyzes manufacturing costs, nutritional profiles, and environmental impact.
• This accelerated new product development by two to 10 weeks, according to the company.

Why this matters: The potential for AI-generated Super Bowl commercials highlights how rapidly artificial intelligence is moving from operational efficiency into creative domains.
• More than 40% of viewers surveyed by Advocado in 2022 said they watch the Super Bowl exclusively for the advertisements.
• A 2010 Nielsen report found that over half of Super Bowl viewers enjoy the commercials more than the game itself.
• If successful, this could fundamentally change how major brands approach their most expensive and visible advertising investments.

What they’re saying: Mondelez previously described its AI tool as helping to “codify some of the things developers are really thinking about when they are developing a product.”