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Mondelez enters 'mobile-only' marketing pact with Google
May 30th, 2013
DEERFIELD, Ill. – Mondelez International Inc. has signed a sweeping strategic agreement with Google to boost its global mobile marketing.
The snack food and candy company said Thursday that the deal will focus on mobile search, mobile display and mobile websites.
Mondelez noted that the agreement is part of the company's objective to invest 10% of its global marketing budget in mobile activations "across the entire consumer journey."
"Mobile is a means to reach consumers where they live and interact. The phone is the one device that consumers have with them at all times," stated Bonin Bough, vice president of global media and consumer engagement at Mondelez. "By 2016, 67% of the global population will have a mobile phone, and nearly half of the population will have smartphones. This is driving us to think differently about consumer engagement.
"Our goal is to become one of the top mobile marketers in the world," Bough added, "and this collaboration with Google will help us get there. It provides us with a competitive advantage, particularly in fast-growing emerging markets."
Beyond a traditional media impressions arrangement, the "mobile-only" deal with Google includes creation of branded mobile websites, training and mobile capability building, analytics and an opportunity to opt into Google's mobile beta programs.
"As we look at mobile as a pure media platform, we're seeing engagement rates that are sometimes four times greater than traditional display," stated Beth Reilly, head of global digital strategy at Mondelez. "So we're mapping media against the entire consumer journey and rethinking our media investment through a mobile lens. The Google global deal is a great example of this approach, but there will be others to come soon."
Brokered in tandem with Starcom MediaVest, the Google agreement spans 16 countries, ranging from developed markets in North America and Europe to emerging markets in Eastern Europe, Latin America, the Middle East and Asia Pacific, with a particular focus on BRIC and emerging markets, Mondelez said.
"Mobile devices are transforming consumer behavior and creating countless opportunities for marketers to engage consumers, whether they're on the go, at home, or shopping in a store," commented Eileen Naughton, vice president of global sales at Google. "Mondelez International is one of the first to truly step up with a strategic global mobile deal of this reach and execution. We're thrilled to work hand in hand with Mondelez International on their global mobile efforts."
Mondelez International's product portfolio includes such brands as Cadbury, Cadbury Dairy Milk and Milka chocolate; Jacobs coffee; LU, Nabisco and Oreo biscuits; Tang powdered beverages; and Trident gum.