Saturday, July 29, 2017

P&G Cut Digital Ad Spend for Brand Safety

Recently the consumer goods giant P&G cut its spending on digital ads. Their two main reasons for the cut were brand safety and ineffective ad placement. CEO, David Talyor, reported that they received research data reporting their ads were ineffective. The most surprising aspect of this is that P&G did not see a decline in sales after the cut.

What does this mean for ad agencies and the ad space as a whole? The article also stated that ad agencies are seeing a decline of almost 1% because of a drop in revenue from consumer packaged goods clients. Will other industries follow suit? Why didn't P&G see a decline in sales because of the cut?

I am still a believer that digital advertising will continue to be the advertising format of choice in the future. This whole thing makes me wonder what role brand loyalty and other factors play in P&G's ability to avoid a loss in sales. I suspect other industries will roll the dice and make the same play, making answers to these questions clearer.

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