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Mondelez Bets on AI Ads Amidst Growing Skepticism

AI Mondelez Advertising Marketing Generative AI Coca-Cola Tech
October 24, 2025
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Cautious Optimism
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Article Summary

Snacking giant Mondelez International is taking a significant step into the world of AI-driven advertising, aiming to dramatically reduce production costs for TV commercials. A senior executive revealed that the company has invested over $40 million in an AI video tool, poised to halve the expense of creating ads. The tool will be initially deployed for holiday season campaigns in 2026, potentially extending to the 2027 Super Bowl. Mondelez is already utilizing this technology for social media content and online product pages. However, the move follows a turbulent landscape for AI advertising, with Coca-Cola's 2024 Christmas ads facing substantial criticism for their perceived ‘soulless’ and ‘creepy’ nature. This raises questions about the effectiveness and public perception of AI-generated content in advertising.

Key Points

  • Mondelez International is investing heavily in an AI video tool to cut advertising costs.
  • The company's initial application of the AI tool will focus on TV ads for the 2026 holiday season.
  • Recent negative feedback on AI-generated advertisements, like Coca-Cola's Christmas videos, introduces a significant risk factor.

Why It Matters

This news is significant for professionals in marketing, advertising, and AI development. It highlights the growing trend of companies leveraging generative AI for cost reduction, but also underscores the considerable challenges surrounding public acceptance and the potential for brand damage when AI-generated content falls flat. The outcome of Mondelez's experiment will be closely watched as a barometer for the broader viability of AI in the advertising sector. The cautionary tale of Coca-Cola’s ads emphasizes the need for careful consideration of creative strategy and ethical implications alongside technological innovation.

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