Proctor & Gamble Cuts Digital Ad Spend

As part of P&G’s recent work to reevaluate its marketing spend and weed out spend that is ineffective, the CPG giant said it cut $200 million in spend in 2017. Last year, P&G revealed during an earnings call that it cut between $100 million to $140 million between April and July due to bots and brand safety concerns. The measures then continued for the rest of 2017, with the brand cutting roughly another $100 million between July and December.

P&G’s CMO, Marc Pritchard said that the brand’s year-old mandate asking for all partners to clean up shady and murky practices is working. More importantly, P&G has not pulled any media spend because of lingering concerns about the Media Rating Council’s third-party view-ability metric, but they have pulled spend due to other issues like brand safety.

“This new level of transparency is shining the light on what’s next—marketers taking back control of our own destiny to accelerate mass disruption—transforming our industry from the wasteful mass marketing we’ve been mired in for nearly a century to mass one-to-one brand building fueled by data and digital technology,” Pritchard said in a transcript of prepared remarks.

Pritchard has been particularly vocal about transparency issues in the digital media supply chain, including view-ability, fraud, a lack of measurement and murky contracts. Collectively, those efforts are 90 percent complete, Pritchard said.

You can read the whole article from AdWeek here: http://www.adweek.com/brand-marketing/when-procter-gamble-cut-200-million-in-digital-ad-spend-its-marketing-became-10-more-effective/

 

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