October 31, 2014
Mondelez teams up with Google to sell cookies and gum
Through a special arrangement, presented here for discussion is a summary of a current article from the monthly e-zine, CPGmatters.
Mondelez has formed a vast strategic partnership with Google and its YouTube unit that will result in 10 percent of the total Mondelez advertising budget going to online video this year.
The deal represents "a cutting-edge approach to video that will make media buying, creative production, data and analytics work together in real time and at a fraction of the cost," Bonin Bough, VP of global media and consumer engagement for the candy and snacks giant, said in a press release.
"There are three pillars to this," he explained to CPGmatters. "First is that it will provide deeper integration of the insights that Google has around branded video and bring it closer to ours. At the scale Google operates what you could call the largest TV channel in the world, with teams all over the world, they can deploy these insights quickly."
The second pillar of the deal is to help Mondelez optimize ROI with online video as it reaches more diverse audiences and those that are difficult to communicate with via traditional channels such as TV. "What does being the best-in-class online-video advertiser look like?" Mr. Bonin said.
And finally, the Mondelez-Google deal involves exploring new models for content creation "that can allow us to get the sheer volume of content that we need to give consumers what they want," he explained.
"How do we create more branded content?" Mr. Bough said. "It could be pure ads. There could be the next 15- or 30-second TV ads coming out of this process. What’s the right creative approach? How do we deliver different video creative to different audience segments? … The economics of providing enough branded content are very tough given the sheer volume of content you have to create to gain impact and awareness."
It also won’t be long before Mondelez and Google invite supermarket retailers into their partnership by taking advantage of apps and location-based technologies to use the new content to influence sales inside the store.
Mr. Bough said, "Google is throwing out insights all day long. If we can match a smartphone to a video user we begin to get to the place where, with anonymized personal data, we can actually see video drive sales. So while there isn’t a retailer component that’s a direct part of this deal, our push is to get real granular to study how video drives sale and go from there."
BrainTrust
Recent Discussions
Discussion Questions
Which of the benefits of the Mondelez/Google deal detailed in the article offers the most potential for Mondelez? Can you see online videos driving sales for retailers on selling floors?
Poll
The classic answer is—it depends.
Video can simply be crap that someone published, or it can be very rich content that the consumer values. The mere presence of video itself doesn’t mean much without some context of the value of the content.
The most exciting aspect mentioned in the article is the potential ability to “match a smartphone to a video user with anonymized data”. This level of data will create the ability to not only measure the impact of a video on sales, but analyze which type of content and context are most effective.
This approach looks promising if it doesn’t creep out consumers that Big Brother is spying on them.
I vote for pillar one, just because it is the only remotely tangible part of the strategy. Mondelez can clearly learn a good deal from Google.
As for pillar two, it remains to be seen if there will be any ROI (although one assumes there will be), let alone how large it might be considering the cost of investing and developing the initial learning curve.
Ditto for pillar three (in the abstract perhaps the idea with the greatest potential). It’s hard to understand what the benefit of new content creation exercises may be until, well, one looks at the new content.
As for question two—I guess I could see that, or, I could see shoppers walking right past them as they do now. The devil is in the details and the execution.
Getting real granular is something we’ll hear about more and more as a key building block in marketing and merchandising decisions. Mondelez will get localized global reach at scale with Google’s insight to bring the right message via video to consumers.
The opportunity on the retail floor should prove fruitful for all. When you engage more senses, you capture people’s attention and that is one thing that is increasingly difficult to do since the advent of the “MTV Generation.” Imagine getting all five senses: visual, hearing, smell, taste and touch plus video to get deeper shopper engagement and drive purchase.
Capturing data will be the only way to tell how successful the venture will be. The potential for success is there. Depending upon the video material, the execution and the consumer response, the idea could work well. While pillar one has great potential—based upon how well those insights are developed, used and addressed, the other two pillars may not be relevant.
As for the second question, videos are going to have to be very compelling to entice consumers to take time out of their shopping to pay attention. Many consumers are in a hurry and will not be interested in anything that makes their shopping trip last longer.
I like the idea of testing different types of content to determine what content drives engagement and leads to purchase. I also think it’s very smart of Mr. Bough to be thinking about more granular involvement with retailers and their in-store digital delivery methods. Testing and learning early WITH retail partners to figure out the best way to leverage in-store presence of video messaging will be an effective way to connect the dots to sales impact.
I’m wondering how many people care. I looked up Oreo, their most popular brand, on YouTube. After nine months, 10 million viewers, or roughly 3 percent of the U.S. population (and I’m making the limited assumption all the views came from the U.S.). How much volume can this move?
Can you see online videos driving sales for retailers on selling floors? YES!
I won’t speak to the Mondelez/Google deal, but will speak to online videos. One of the most powerful forms of marketing is called “content marketing.” One of the best places to share content is YouTube. Rather than blatant promotion (or even subtle promotion), smart companies are putting valuable content online. Customers and potential customers are loving it.
Put your best foot forward by offering value added content and you’ll pick up new customers, keep existing customers and build a stronger business.
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The classic answer is—it depends.
Video can simply be crap that someone published, or it can be very rich content that the consumer values. The mere presence of video itself doesn’t mean much without some context of the value of the content.
The most exciting aspect mentioned in the article is the potential ability to “match a smartphone to a video user with anonymized data”. This level of data will create the ability to not only measure the impact of a video on sales, but analyze which type of content and context are most effective.
This approach looks promising if it doesn’t creep out consumers that Big Brother is spying on them.
I vote for pillar one, just because it is the only remotely tangible part of the strategy. Mondelez can clearly learn a good deal from Google.
As for pillar two, it remains to be seen if there will be any ROI (although one assumes there will be), let alone how large it might be considering the cost of investing and developing the initial learning curve.
Ditto for pillar three (in the abstract perhaps the idea with the greatest potential). It’s hard to understand what the benefit of new content creation exercises may be until, well, one looks at the new content.
As for question two—I guess I could see that, or, I could see shoppers walking right past them as they do now. The devil is in the details and the execution.
Getting real granular is something we’ll hear about more and more as a key building block in marketing and merchandising decisions. Mondelez will get localized global reach at scale with Google’s insight to bring the right message via video to consumers.
The opportunity on the retail floor should prove fruitful for all. When you engage more senses, you capture people’s attention and that is one thing that is increasingly difficult to do since the advent of the “MTV Generation.” Imagine getting all five senses: visual, hearing, smell, taste and touch plus video to get deeper shopper engagement and drive purchase.
Capturing data will be the only way to tell how successful the venture will be. The potential for success is there. Depending upon the video material, the execution and the consumer response, the idea could work well. While pillar one has great potential—based upon how well those insights are developed, used and addressed, the other two pillars may not be relevant.
As for the second question, videos are going to have to be very compelling to entice consumers to take time out of their shopping to pay attention. Many consumers are in a hurry and will not be interested in anything that makes their shopping trip last longer.
I like the idea of testing different types of content to determine what content drives engagement and leads to purchase. I also think it’s very smart of Mr. Bough to be thinking about more granular involvement with retailers and their in-store digital delivery methods. Testing and learning early WITH retail partners to figure out the best way to leverage in-store presence of video messaging will be an effective way to connect the dots to sales impact.
I’m wondering how many people care. I looked up Oreo, their most popular brand, on YouTube. After nine months, 10 million viewers, or roughly 3 percent of the U.S. population (and I’m making the limited assumption all the views came from the U.S.). How much volume can this move?
Can you see online videos driving sales for retailers on selling floors? YES!
I won’t speak to the Mondelez/Google deal, but will speak to online videos. One of the most powerful forms of marketing is called “content marketing.” One of the best places to share content is YouTube. Rather than blatant promotion (or even subtle promotion), smart companies are putting valuable content online. Customers and potential customers are loving it.
Put your best foot forward by offering value added content and you’ll pick up new customers, keep existing customers and build a stronger business.