Tuesday, August 01, 2017

AdWeek: Procter & Gamble Cut Up to $140 Million in Digital Ad Spending Because of Brand Safety Concerns

In its earnings call, Procter and Gamble announced that they cut their digital ad budget in the U.S. by $140mn, with cuts driven by concerns for safety. In addition, P&G expressed concerns with safety over brand association, something that has been discussed in the media before, given limited regulation on the YouTube videos ads show up for.

The CEO said that cuts came from "largely ineffective" digital advertising channels. In the quarter, revenue still grew 2% in the U.S., though the long-term effects are still yet to be seen.

I can't imagine that P&G is going to ignore digital advertising. The CEO also expressed the importance of social media in the call as well. I do think this is a negotiating chip and message to digital advertisers that they need to do better in terms of measurement and regulation. The digital advertising universe is still relatively nascent, and I believe this is the CEO's way of holding the beneficiaries' collective feet to the fire, and proving out the thesis sooner rather than later.

AdWeek: http://www.adweek.com/digital/procter-gamble-cut-140-million-in-digital-ad-spending-because-of-brand-safety-concerns/

No comments: