Mondelez International has struck an online video advertising deal with Google. As part of the arrangement, Mondelez and Google will partner on content pilots through Youtube's brand partner program. Mondelez is evaluating the platform for use across its brands, but initially will focus on the Sour Patch Kids brand. The company said that the deal is part of its goal to dedicate 10% of its 2014 ad budget to online video.
The company has already stated that it plans to grow its North American mobile and digital ad spending to more than half of its budget by 2016. In line with this initiative, earlier in 2014, the company announced a strategic partnership with Facebook that was a "joint commitment to innovation, opportunities to opt into Facebook's beta-testing programs, access to research and capability-building through immersion days in priority markets". These two initiatives demonstrate how traditional CPG companies can reach consumers in new ways as the digital and mobile advertising landscape evolves.
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