Mondelez’s Strategic Adaptation to the Rise of Agentic Commerce: Embracing AI in Digital Retail
Mondelez Embraces the Future of Agentic Commerce: A Shift in Digital Strategy
In a rapidly evolving digital landscape, Mondelez International found itself at a pivotal crossroads. With retail partners predicting that 30% of their site traffic would be generated through agentic commerce by 2028, the company recognized it was time to adapt or risk falling behind. AI was revolutionizing how consumers searched for products online, and for a giant in the consumer packaged goods (CPG) space, the stakes were high.
Andrew Lederman, Vice President of Global Digital Commerce at Mondelez, articulated the urgency of the situation during a recent episode of the Digiday Podcast. “This is more than a $3.5 billion business for us in terms of digital commerce,” he explained. With AI poised to disrupt traditional models, the key question was no longer if this shift would happen, but when.
Understanding Agentic Commerce
Agentic commerce refers to consumer-driven interactions that rely heavily on AI technologies to influence purchasing decisions. As Mondelez assessed its digital presence, it became clear that an overhaul was necessary to harness the power of this new wave of search dynamics. The brand portfolio, which includes favorites like Oreo, Ritz, and Sour Patch Kids, depended on this transition for future growth.
The Challenge of Blocked Bot Crawlers
Initially, Mondelez had opted to block AI bot crawlers in an effort to protect intellectual property and maintain control over its content. However, this decision backfired; it became evident that their flagship product, Oreo, was only cited in about 10% of AI chatbot cookie recommendations—a concern Lederman directly linked to their restrictive stance on bot access.
Realizing the implications of their approach, Mondelez unblocked necessary bot crawlers and began crafting an agentic commerce strategy, with search optimization at its core. As Lederman noted, “We actually had to fully take a different look at our brand.com experiences to make sure that they’re optimized towards AI.”
The Three-Part Rebuild
The digital overhaul was not merely a matter of aesthetics; it required comprehensive technical adjustments. Mondelez focused on:
-
Structured Product Knowledge: Ensuring consistent and easily accessible information across websites and other platforms was crucial. This structured approach aimed to improve visibility in AI-driven searches.
-
Scaling AI-Native Content: Beyond optimizing for traditional snack-related queries, Mondelez aimed to enhance its chances of appearing in a broader array of consumer prompts. This shift intended to capture interest beyond mere product searches.
-
Robust Measurement Systems: Arguably the cornerstone of their strategy, a comprehensive measurement system was implemented to treat AI results as a performance marketing channel. This included tracking key performance indicators (KPIs) based on visibility, citation, and sentiment.
Positive Trends and Future Outlook
Since implementing these changes, Mondelez has already seen measurable improvements. For specific cookie-related queries, Oreo now appears approximately 70% of the time, while its citation for broader snack topics has surged to around 30%. Considering the trajectory of agentic commerce, Lederman anticipates that 20% to 30% of Mondelez product purchases could occur via AI agents in the near future.
As he looks ahead, Lederman is contemplating next steps, such as integrating instant checkout features and leveraging large language models within retail media. “We need to ensure that we can translate what humans think of when they think of Oreo or Cadbury into what AI perceives," he emphasized, highlighting the complexity of the challenge.
Conclusion
Mondelez’s proactive approach to digital commerce in the age of AI exemplifies how brands can navigate the shifting landscape of consumer behavior. By embracing innovation and prioritizing AI optimization, Mondelez is well-positioned to not only meet the demands of today’s consumers but to set the standard for the future of agentic commerce. In a world where digital engagement is becoming increasingly sophisticated, the ability to adapt and evolve is essential for success.