Hershey Bets on Agentic AI to Rethink $2B in Marketing Spend (www.adweek.com)

Hershey is transforming its marketing strategy by integrating agentic AI into its marketing mix modeling (MMM) processes, streamlining what has traditionally been a slow, retrospective analysis into a real-time decision-making tool. By collaborating with analytics platforms Mutinex and Tracer, Hershey aims to automate MMM, which evaluates the impact of advertising spend on sales, allowing for faster and more frequent insights. Previously confined to manual analysis that lagged significantly behind market changes, the company can now expect to run models monthly, leveraging Mutinex’s AI capabilities and Tracer’s data cleaning functionalities. This shift is particularly significant as it addresses the pressing need for improved media measurement and budget justification amid increasing fragmentation in digital marketing. With early indications that this AI-driven approach could increase attributable revenue by 4-5%, Hershey could revolutionize how it allocates its substantial $2 billion marketing budget—moving from three analyses per year on limited brands to potentially 12 comprehensive evaluations. This enhancement not only boosts operational efficiency but also promotes greater accountability for marketing investments, enabling Hershey to make informed, dynamic decisions in an ever-evolving market landscape.