In an era where data drives decision-making, Hershey is taking a bold step by integrating agentic AI into its marketing strategies to address a significant challenge: the accuracy and timeliness of marketing mix modeling (MMM). Traditionally viewed as an outdated tool, MMM has encountered growing critiques due to its slow and retrospective processes. As the confectionery giant behind beloved brands such as Reese’s and Skinny Pop, Hershey is now transitioning to a more sophisticated, real-time approach, aiming to revitalize its marketing efforts significantly.

The collaboration between Hershey and advanced analytics platforms, Mutinex and Tracer, marks a significant leap forward. Mutinex, equipped with advanced AI technologies like Claude and Gemini, empowers Hershey with a real-time MMM system. This new framework enables the company to make timely decisions regarding media and trade spending on a monthly basis. Previously, the company faced delays where crucial data from 2024 would only be evaluated midway through 2025, hindering strategic planning for 2026. As highlighted by Vinny Rinaldi, Hershey’s VP of Media and Marketing Technology, this significant shift allows for more agile marketing strategies aligned with contemporary business demands.

Tracer plays a crucial role in this transformation by standardizing and cleaning fragmented data from Hershey’s marketing and retail systems. This foundational work ensures that Mutinex’s models can function more efficiently and accurately. The push for integrating AI into media measurement systems comes at a critical moment for Chief Marketing Officers (CMOs) who are facing challenges imposed by an increasingly fragmented advertising landscape and tightening budgets. The integration of agentic AI systems—capable of automating vital portions of marketing workflows—gives CMOs confidence that marketing expenditures can be evaluated with greater precision, transitioning the narrative around these costs from mere expenses to strategic investments.

One of the notable innovations from Mutinex is its multi-agent system, comprising various AI agents, each specializing in different domains relevant to marketing analytics. For instance, some agents focus on marketing econometrics, others on pricing strategies, and some on diagnosing model failures. This collaborative approach ensures that a holistic and informed perspective is maintained. Through the integration of Tracer’s capabilities, Hershey can now conduct robust models in as little as three weeks, marking an impressive reduction in time typically spent on analysis. The result is a quicker iteration to evaluate and readjust marketing spend, freeing marketers from the constraints of relying on outdated data.

The use of AI not only simplifies the analysis but also addresses a pervasive issue in the industry: skepticism surrounding marketing investments. As Lou Paskalis, a market advisor at Mutinex, pointed out, historical methods of attribution have made it difficult for marketing initiatives to be taken seriously as credible investments. The increased efficiency and accuracy brought on by this advanced technology may help shift this perception, bringing transparency and accountability to marketing expenditures.

As the rollout of Mutinex’s system begins, early indicators suggest that Hershey’s investment in this innovative technology may yield impressive returns. The company anticipates a revenue boost of 4% to 5% attributable to media as a direct consequence of this enhanced analytical capability. Previously reliant on MMM analysis conducted three times a year for a handful of brands, Hershey expects that this transformation will enable it to respond dynamically to market trends and consumer behaviors.

Ultimately, Hershey’s decisive move to integrate AI into its marketing mix modeling is a testament to the power of technology in addressing long-standing challenges in the marketing sector. By embracing cutting-edge solutions like Mutinex and Tracer, the brand is not only positioning itself to reap immediate financial benefits but also setting a standard for others in the industry to follow. As the marketing landscape continues to evolve, companies willing to leverage AI and data analytics will undoubtedly lead the way into a more responsive and profitable future.