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Hershey Bets on Agentic AI to Rethink $2B in Marketing Spend

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31–40 of 57 posts

Re: Hershey Bets on Agentic AI to Rethink $2B in Marketing Spend

#31
The truth is that no one can tell why someone bought a Hershey bar. There's no way to distinguish childhood nostalgia from price competitiveness, developed habits, local availability, etc. It's all just guessing*.

The entire ad business lives from this guessing process, so now they can have AI do the guessing.

*Source: I was employed briefly at a company in this space that works with popular brands. They offered me cash to go away when I started sniffing out the underlying BS of how it worked.

Re: Hershey Bets on Agentic AI to Rethink $2B in Marketing Spend

#32

> “We were getting the full read of 2024 [data] midway through 2025, while we were planning for 2026,” said Vinny Rinaldi, vp of media and marketing technology at Hershey. “That alone is just not conducive to where marketers need to be.” Irrespective of AI, it's astounding that companies have been throwing $2bn/yr at marketing, and their analytics data on that spend is delayed 6-18 months. That's nearly 15% of their…

My guess is they have to wait to measure the downstream impact of their marketing. And marketing attribution is notoriously fuzzy. If a tv ad runs on may 1 what is the attribution window to someone buying a Hershey bar? How do you know they saw the ad? And that the ad influenced their purchase behavior? The answer is you really don’t do you come up with some kind of formula based a few assumptions.

Ultimately I am highly skeptical. Ad tech is almost always a repackaging of the same product with a new name. They may be using AI to help analyze the data, but I doubt it really has any kind of sizable impact.

Re: Hershey Bets on Agentic AI to Rethink $2B in Marketing Spend

#33
post #5

They would get a lot more ROI by just investing in making products that don’t taste like shit. Note that some of their products have been enshitified so much that they can’t even legally be called chocolate in some jurisdictions. It’s cheap filler designed to simulate chocolate. Agentic AI is not going to solve that.

100%. PGPR is not food and doesn't belong in food!

Re: Hershey Bets on Agentic AI to Rethink $2B in Marketing Spend

#34

> “We were getting the full read of 2024 [data] midway through 2025, while we were planning for 2026,” said Vinny Rinaldi, vp of media and marketing technology at Hershey. “That alone is just not conducive to where marketers need to be.” Irrespective of AI, it's astounding that companies have been throwing $2bn/yr at marketing, and their analytics data on that spend is delayed 6-18 months. That's nearly 15% of their…

Could be worse. Steve Levitt has a story about working out ad spend causality and actively ignoring the truth[1]:

> LEVITT: And they said to me "[...] One time we hired this summer intern and his job was to do the newspaper inserts for Pittsburgh, and the guy was so incompetent that he just didn’t do it. And when the C.E.O. found that out, he said, ‘If you ever do that again, you’re all fired.’

> LEVITT: So, I said to them, “Well, O.K. But when you looked at the results, what happened to the sales in Pittsburgh when you were dark for a month?” And they called me back about a week later and they said, “You’re not going to believe it. We looked at the data in Pittsburgh, and we saw no impact on sales when they didn’t do any inserts for a month.” I said, “Oh, my God, that’s amazing! O.K., so when can we get started?”

> LEVITT: They said, “Are you crazy?” It was almost if they found out they didn’t work, it was far worse for these people than it was not finding out it didn’t work. Because then they had to explain why for the last 15 years they had been wasting $200 million a year. So, they were happy to just live in a world in which as long as there were ads in every market, every Sunday, life was good.

    [1]: https://freakonomics.com/podcast/does-advertising-actually-work-part-1-tv-ep-440/

Re: Hershey Bets on Agentic AI to Rethink $2B in Marketing Spend

#35

The truth is that no one can tell why someone bought a Hershey bar. There's no way to distinguish childhood nostalgia from price competitiveness, developed habits, local availability, etc. It's all just guessing*. The entire ad business lives from this guessing process, so now they can have AI do the guessing. *Source: I was employed briefly at a company in this space that works with popular brands. They offered me c…

> They offered me cash to go away

It sounds like you got fired and offered severance.

Re: Hershey Bets on Agentic AI to Rethink $2B in Marketing Spend

#36

The truth is that no one can tell why someone bought a Hershey bar. There's no way to distinguish childhood nostalgia from price competitiveness, developed habits, local availability, etc. It's all just guessing*. The entire ad business lives from this guessing process, so now they can have AI do the guessing. *Source: I was employed briefly at a company in this space that works with popular brands. They offered me c…

People like to claim you can measure advertising and marketing directly and for most products and services that is just not true. But executives think it must be true and so demand it and so they end up hiring / going with the best liar.

Re: Hershey Bets on Agentic AI to Rethink $2B in Marketing Spend

#37
I'm amazed that Hershey is spending $2B on marketing. I honestly don't think I've seen any advertising for the brand itself at any point in the past decade, and I don't have any positive association with it: it's the "bad" chocolate you buy for cooking?

Looking at their subsidiary brands, I don't think I've seen any serious advertising for them either. KitKat is doing viral marketing on social media, but surely, that's not $2B... I've never seen anything for Twizzlers, Pirate's Booty, Milk Duds, Whoppers... the only reason I know these brands is that they're on the shelf in my grocery store.

Unless I'm an outlier, I think it's smart of them to stop throwing $2B down whatever hole they're throwing it into right now.

Re: Hershey Bets on Agentic AI to Rethink $2B in Marketing Spend

#38

> “We were getting the full read of 2024 [data] midway through 2025, while we were planning for 2026,” said Vinny Rinaldi, vp of media and marketing technology at Hershey. “That alone is just not conducive to where marketers need to be.” Irrespective of AI, it's astounding that companies have been throwing $2bn/yr at marketing, and their analytics data on that spend is delayed 6-18 months. That's nearly 15% of their…

This is CPG - things move much more slowly...

Re: Hershey Bets on Agentic AI to Rethink $2B in Marketing Spend

#39
post #28
post #11

Wait, does their logo actually end with a picture of a pile of poop, complete with gray stink lines and everything?? Amazing... https://static-www.adweek.com/wp-content/uploads/2026/04/Her...

Not 100% sure if you're serious, but it's a piece of Hershey Kisses candy which predates the existence of emojis by at least a century.

Not serious ;-)

Re: Hershey Bets on Agentic AI to Rethink $2B in Marketing Spend

#40

I'm amazed that Hershey is spending $2B on marketing. I honestly don't think I've seen any advertising for the brand itself at any point in the past decade, and I don't have any positive association with it: it's the "bad" chocolate you buy for cooking? Looking at their subsidiary brands, I don't think I've seen any serious advertising for them either. KitKat is doing viral marketing on social media, but surely, that…

This probably includes "tradespend" - marketing dollars spent on retails and distributors to incentivize premier placement in retail/grocery channels.
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