The man with a $7bn marketing budget changes his online tack by Dan Sherratt
In a follow up to my article on Traditional vs Digital Marketing Giants on 2nd March (http://www.networkitr.co.uk/news/traditional-marketing-vs-digital-marketing/), the world’s largest advertiser has announced a seismic shift in their marketing focus.
Procter & Gamble’s Chief Brand Officer Marc Pritchard has revealed that, in the wake of the scandal around adverts appearing alongside unsavoury videos, the data they are now provided with has lead them to cut their digital marketing footprint. The marketing boss, who controls an annual budget of $7bn, has said it is “likely” that P&G will reduce the amount they are spending on social media advertising.
They will move away from a “spray and pray” approach to one which publishes fewer ads, but targets their audience more accurately.
This has all come following Facebook being forced to reveal greater detail around where adverts appear, who saw them, and how long they were viewed for. Pritchard has said that having reviewed this data he “realised there was a lot of waste” and that internet advertising is not “all it was cracked up to be.”
On the surface this sounds like great news for the traditional marketing big players such as WPP, however P&G have intimated that they may move a large chunk of this in-house to “take back control” of their marketing strategies and which online advertising slots they focus on.
While these are the actions of only 1 company, the impact cannot be understated – 1/3 of P&G’s annual marketing budget is spent on online campaigns and this amounts to $2.3bn a year!