Mondelez (AKA Kraft Foods) Agrees To Huge Upfront Deal With YouTube

By 10/02/2014
Mondelez (AKA Kraft Foods) Agrees To Huge Upfront Deal With YouTube

A major food corporation has committed to a multi-million dollar deal that could leave some traditional media execs feeling uneasy. Mondelez, the international conglomerate formerly known as Kraft Foods, has agreed to a big upfront deal that will see commit a significant portion of its ad budget to YouTube.

Mondelez’s brands include Oreo, Cadbury, and Trident, all of which have been attached to YouTube videos in the past. The new deal with Google is part of a huge push toward online video, where, as Business Insider explains, Mondelez hopes to spend 10% of its total advertising budget this year. While the company hasn’t given an exact figure, one report suggests Mondelez could spend $200 million on the deal.

Mondelez likes online video advertising because it claims to drive twice as big of an ROI online as on traditional media platforms. It is hardly the first corporation to shift a large amount of spend online. Last year, Razorfish and DigitasLBi brokered a nine-figure deal that included advertisements across several Google platforms.

In addition to its upfront deal, Mondelez has also joined YouTube’s brand partner program, which it will use to create content for its Sour Patch Kids brand.

This deal is the latest evidence that brands are increasingly interested in the efficiency of online video advertising. Mondelez, whose snack foods typically appeal to a younger demographic, is particularly well-suited to spend a large portion of its budget online. Mondelez hasn’t laid out exactly how it will use its newly-acquired inventory, but something tells me these guys should expect a call.