Mondelēz International Unveils New Advertising Model

DEERFIELD, Ill. — Mondelēz International Inc. launched a new media monetization model that will allow it to improve the return on investment of its global media spending. Through this "fearless marketing" model, Mondelēz will focus on forming new media partnerships to acquire, develop and distribute content properties that will build its power brands and generate revenue.

This strategy will let the company make larger-scale investments behind its power brands by creating engaging and commercially viable content that leads to incremental revenue streams, Mondelēz said. Its goal is for up to 10 percent of its global media investors to break even or turn a profit by 2020.

"Capturing audience attention is more difficult than ever. As audiences become more empowered to control their viewing experience, the old model of interruptive advertising is rapidly becoming irrelevant," stated Laura Henderson, global head of content and media monetization at Mondelēz International. "This new approach will hold us to a higher standard of creating content that earns attention and is good enough to make money. By developing content that people want to watch, we can begin to monetize our investments, offsetting costs, improving return on investment and making our media spending more sustainable."

As part of the new model, the company announced a collection of content properties across a variety of formats in film, television, digital and mobile platforms. The first three planned initiatives are:

Stride Gum Presents: Heaven Sent — On July 30, Stride gum will hold a live event where professional skydiver Luke Aikins will jump from a plane at 25,000 feet with nothing but the clothes on his back, landing safely on the ground. Mondelēz International will executive produce the event alongside Amusement Park Entertainment and four-time Emmy Award winner Al Berman. The event is part of a national campaign to support Stride's new "Mad Intense" gum that launches in stores this summer.

Buzzfeed Partnership — This first-of-its-kind partnership will build content capabilities for Mondelēz International's portfolio of brands. The initiative will continue integration of food and recipe content on platforms like Tasty as well as new content programs for brands. It will also see the co-creation of a new original content brand in the well-being area.

Mobile Game Suite — Building on the success of the Oreo Twist Lick Dunk game, Mondelēz will roll out a suite of branded games, with Sour Patch Kids as the first to launch later in 2016. More brands will follow over the next 18 months.

"Make no mistake about it, this is the future of how brands and advertisers will connect with consumers and drive real growth," said Bonin Bough, chief media and e-commerce officer at Mondelēz International. "More importantly, this is how brands can continue to help elevate the ecosystem for all of their partners from broadcasters to publishers. This is a different model that is in service of the entire industry."