Dive Brief:
- Mondelez announced plans Tuesday to create more content in-house as it shifts away from the more traditional advertising that consumers respond to less today.
- Mondelez reported success with its free Oreo-themed "Twist, Lick, Dunk" mobile app, which has doubled Mondelez's investment through in-app purchases and ads since its November 2012 launch. The company is reportedly making more mobile apps, including one for Sour Patch Kids.
- Mondelez announced a partnership with BuzzFeed to produce both branded and unbranded content, a portion of which will be health-centric to support the company's push to attract health-conscious consumers. Mondelez is also partnering with Fox to air a live broadcast of a sky-diving stunt that will promote the launch of a new Stride gum variety, "Mad Intense."
Dive Insight:
Food and beverage brands are embracing content as a way to sell products and engage and entertain consumers. By keeping the products in the background, or making them part of a story rather than a direct advertisement, manufacturers can use in-house content to boost overall marketing ROI.
As consumers, particularly millennials, respond less to traditional advertising, food and beverage companies are finding new ways to engage with consumers. Social media marketing has played a significant role, but branded and unbranded content is becoming more prevalent. While this content encourages social media interaction, it also extends to other channels, such as television.
Earlier this month, PepsiCo announced a new, state-of-the-art content studio in Manhattan and its new internal production arm, Creators League. The company plans to produce both branded and brand-agnostic content to offset costs of the rest of its branded marketing budget. Last year, pre-merger Kraft created a content hub called "Twist That Dish" to enable consumers to share hacks, or "twists," that help them stretch their budgets.
The content push also aligns with Mondelez's expansion into e-commerce. Mondelez and other manufacturers could further impact e-commerce efforts by pursuing online-friendly content creation that complements or even drives e-commerce endeavors. Much of this could be done in-house, but through strategic partnerships, manufacturers can expand content reach to other e-commerce and media platforms' audiences and strengthen e-commerce sales.