Mondelez International, the company behind iconic brands like Oreo, is gearing up to launch AI-generated television commercials by next year, aiming to significantly reduce marketing expenses. The snacking conglomerate has reportedly invested over $40 million in an AI video creation tool that it anticipates will cut production costs in half.
Jon Halvorson, Mondelez’s Global Senior Vice President of Consumer Experience, revealed that the AI-powered TV ads are projected to debut by the 2026 holiday season, with ambitions to potentially secure a Super Bowl slot in 2027. The AI tool is already being leveraged to generate social media content for brands like Chips Ahoy and Milka chocolate, and is slated to design online product pages for Oreo cookies starting this November.
While the adoption of AI in advertising is increasing, primarily driven by cost-saving incentives, the results have been inconsistent. Last year, Coca-Cola’s AI-generated Christmas ads were met with criticism, with some viewers describing them as lacking soul and even unsettling.