Oreo-Maker Mondelez to Launch AI-Generated TV Ads in 2026

TL;DR: Snacking giant Mondelez is investing over $40 million in generative AI video technology to slash marketing costs by 50%, with plans to air AI-generated TV commercials during the 2026 holiday season and potentially the 2027 Super Bowl. The company is already using the tool for social media content for Chips Ahoy and Milka chocolate, despite industry-wide backlash against AI advertising exemplified by Coca-Cola’s widely-criticised 2024 Christmas videos.

Mondelez, the company behind Oreo cookies, Chips Ahoy, and Milka chocolate, is preparing to release AI-generated television advertisements next year as part of a broader strategy to reduce production expenses through generative AI technology.

Context and Background

Jon Halvorson, Mondelez’s global senior vice president of consumer experience, told Reuters that the company has invested more than $40 million in an AI video tool capable of halving production costs compared to traditional advertising methods.

The AI-generated TV advertisements should be ready to air in time for the 2026 holiday season, Halvorson confirmed, with potential deployment during the 2027 Super Bowl—one of advertising’s most prestigious and expensive platforms.

Mondelez is already deploying the technology across digital channels. The company currently uses the AI tool to create social media content for Chips Ahoy cookies and Milka chocolate products, and plans to utilise it for designing online product pages for Oreo cookies beginning in November.

The move represents a calculated risk in an advertising landscape where AI-generated content has provoked fierce consumer backlash. Last year, Coca-Cola’s AI-generated Christmas advertisements were savaged online as “soulless” and creepy, demonstrating significant reputational hazards associated with AI advertising deployment.

Looking Forward

Mondelez’s commitment to AI-generated advertising reflects broader industry trends as companies increasingly turn to artificial intelligence for cost reduction in marketing operations, though results remain decidedly mixed across the sector.

The $40 million investment signals Mondelez’s confidence that cost savings justify potential reputational risks associated with AI-generated content. The company’s 50% production cost reduction claim, if realised at scale, could provide substantial competitive advantage and pressure competitors to adopt similar technologies regardless of consumer sentiment.

However, the Coca-Cola precedent suggests that consumer tolerance for AI-generated advertising remains uncertain. The critical reception of Coca-Cola’s Christmas videos demonstrates that brands risk alienating audiences if AI-generated content fails to meet emotional or aesthetic expectations established by traditional advertising.

Mondelez’s phased rollout approach—beginning with social media and online product pages before advancing to premium television slots—suggests awareness of these risks. Testing AI-generated content in lower-stakes digital environments allows the company to refine approaches and gauge consumer response before committing to high-visibility, high-cost television placements.

The advertising industry’s broader trajectory appears to be pushing toward AI adoption driven by cost pressures rather than creative considerations. Whether consumers ultimately accept AI-generated advertising as equivalent to traditional production, or whether the technology becomes synonymous with cost-cutting at the expense of creative quality, will significantly influence how brands approach marketing strategy in coming years.

The success or failure of Mondelez’s 2026 holiday and potential 2027 Super Bowl AI-generated advertisements may establish important precedents for the industry, particularly for fast-moving consumer goods companies seeking to balance cost efficiency with brand perception management.

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