Topic > P and G - 701

According to Marketing Week (Vizard, 2014), Chief Financial Officer Jon Moeller, speaking on an earnings call, said Procter & Gamble (P&G) will continue to increase its presence in the digital sector and social media arenas amounting to 30% of its global marketing budget. This equates to $2.91 billion of P&G's (www.redbooks.com) $9.7 billion in annual advertising spending. Moeller stated the purpose of this shift in advertising revenue (Vizard, 2014, p. 4) to digital marketing as follows: “Digital allows for very effective and more targeted targeting of a message to a consumer. If you think simplistically about men and women, in television advertising aimed at all, it is possible to direct content much more carefully to a recipient." This shift in philosophy from traditional advertising, print, TV and radio may be the product of a changing world that is becoming increasingly social. and message delivery now occurs primarily over the Internet. Or the change could take advantage of the lower cost of digital marketing compared to traditional marketing. It is most likely a combination of both. As stated by Moeller, digital marketing allows a company to target specific segments of society to advertise over mass media. Utilizing the social aspects of digital marketing should reduce your overall marketing costs. Social media is all about word of mouth. If a manufacturer the size of P&G can target its advertising to people who actually use its products or to those who use similar products, this should theoretically reduce advertising costs. P&G could then tailor an advertising campaign specifically to these consumers instead of having to target a broad audience. P&G could get more creative in its appeals to people… middle of paper… is it traditional TV, print or radio or online marketing is really about likeability. Does the consumer like our company? Why or why not? Online marketing offers the greatest opportunities in the history of advertising. With instant consumer feedback, businesses can immediately know whether a product or service is hit or miss and can adapt faster than ever. Works CitedLaury, D. (2013, July). Digital ROI: What we can learn from Procter & Gamble [Blog comment]. Retrieved from http://www.gearylsf.com/press/digital-roi-what-we-can-learn-from-procter-gamble/Vizard, S. (2014, January 24). P&G invests 30% of its average spend in digital. Marketing Week (online edition), 4. Retrieved from http://web.b.ebscohost.com/ehost/detail?vid=16&sid=811d13d0-570c-4b2e-ae99-81dcb5188b62%40sessionmgr198&hid=108&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d % 3d #db=bth&AN=94073113