The parent company one of the world’s most favorite cookie brands has signed a deal with Google Inc. (NASDAQ:GOOG), which means there would be more Oreo ads to watch on YouTube. Mondelez (NASDAQ:MDLZ) wants to change direction where its advertisement investment is concerned; it wants to become more social media centric, especially with a strong video presence. The press released which announced this deal between the two giants gave specifics of the company setting aside 10% of its total promotional budget for online videos.
The parent company, which sports many power brands, wants growth that is two pronged. They want this deal to make an impact on its sales growth, which will cover the wide portfolio of confectionery items and in addition to more habitual buying they want to have an umbrella growth effect due to this deal. Mondelez has finally succumbed to the fact that social media is building more and more influence on people’s lives and this deal is the first step towards a social media centric advertising strategy.
This deal with Google will help the company bridge the digital gap and allow Mondelez to take front seat in the world of social media with the powerful YouTube helping out with its media strategy. YouTube has done a great deal in helping out scores of companies by allowing them to attract a global audience; following the same path, Mondelez with its renowned advertising team will create innovative commercials for its brands and using YouTube’s global reach will launch them worldwide.
Online brand building is the way companies are doing it nowadays and it has had excellent results so far. Around 58% consumers are gained through the internet; these consumers use the internet for multiple reasons, from searching for the nearest outlet which sells a particular product to finding out what is the latest offering of the brand they want to purchase, everything it done through the internet. Companies are now reaching out to their consumers directly and people have come to expect this intimacy from every brand. Mondelez should surely not stay out of this social media race.
The reason why Mondelez chose Google Inc. (NASDAQ:GOOGL) for its media partnership is its top notch technology innovation. Mondelez will combine its digital innovation with Google’s technological innovation and come up with a sweeping new online media approach. Costs would be minimal because the company’s creative unit will reach out to customers through a prominent online portal. Consumers for not just Oreo but Trident, Toblerone, Nabisco and Cadbury will be targeted for stellar results.
This is clearly an exciting time for Mondelez (NASDAQ:MDLZ) employees as this is a great media push at the company. This online video deal includes the North American, Eastern and Western Europe, Latin America, Middle East and Asia Pacific territories. Four months ago Mondelez announced that it would be allocating half of its marketing budget to digital platforms in two years’ time. This strategy has been fast forwarded by signing this deal with Google which represents around 10% of the $200 Million yearly global marketing budget.
