P&G made news by announcing it cut its 2017 digital advertising spend by $200M. Just because it's the world's biggest advertiser doesn't mean that P&G isn't keeping track of its ad effectiveness. As the company learned more about their digital ads' performance, it realized the money could be spent much more effectively elsewhere.
Here are some highlights from the article:
Ineffective mobile ads: P&G found out that the average view time on its mobile ads was 1.7 seconds
Tide: YouTube was negatively hurting P&G's brand by showing kids participating in the Tide Pod Challenge. It had to tweak its algorithms so that it rerouted traffic to a company-sponsored awareness ad.
Scale: Roughly 1/3 of P&G's $7.1B advertising spend goes to digital
Given P&G's influence to other major CPG brands, it'll be interesting to see if other companies mirror their cutbacks, or if the big tech companies can up their games.
https://www.wsj.com/articles/p-g-slashed-digital-ad-spending-by-another-100-million-1519915621?mod=djem10point
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