NEW YORK: Mondelez International, the snacks manufacturer, is partnering with Fox Networks Group to develop new advertising formats for video-on-demand and streaming services.
As part of this tie-up, Mondelez will work with TrueX, an advertising-technology platform purchased by Fox two years ago, to explore new ad formats, experiences and prospective standards in the digital video space.
One illustration of how this initiative might function in practice involves thinking about specific ad offerings for different viewing occasions, like playing back content on smartphones, Apple TV or Roku's streaming sticks.
This programme builds on tests by Mondelez and TrueX that enabled consumers to engage with an ad immediately before their digital content began in exchange for watching video content without interruption from further brand messages.
Kristi Karens, North America Lead-Media and Content at Mondelez, told Advertising Age this effort will be funded from its main media budget, not money set aside for "test and learn" activations.
"This is a cornerstone of our digital commitments," she said. "It is not a small dabble, but a significant portion of our investment and overall deal with Fox."
By way of further evidence, Karens revealed the company's expenditure through TrueX will be five times greater than all other digital resources allocated across all Fox's properties.
A core motivation behind this partnership for the owner of Oreo cookies, Stride gum and Sour Patch Kids candy is to earn the attention of consumers.
"We don't deserve consumers' attention. We have to earn it," Karens said in an interview with Variety. "Consumers are feeling less tolerant of traditional ads."
Equally, the aim is to identify approaches that can address commercial clutter, viewability concerns and ad blocking, while simultaneously enhancing accountability.
"This is a commitment to rethinking the ad model," said Joe Marchese, President of Advanced Advertising Products at Fox Networks Group.
He gave the example of brands being able to tell their own stories during successive breaks in video-on-demand content, with the benefit of cutting the number of ads and avoiding repetition in the commercials seen by consumers.
Alongside giving Fox the chance to protect revenue while trimming ad loads and augmenting the viewer experience, Marchese flagged up the potential advantages of such new ad formats for agencies.
"Deals like this give the agency permission to justify cost," he said. "These are different types of impressions."
Data sourced from Advertising Age, Variety; additional content by Warc staff