After previously implementing a gradual $200m cut to their digital ad budget in 2017, Procter & Gamble (P&G) held true to their statement of further depletion of budgets and earlier this year axed their agency roster by a further 50%. With a significant decrease to their budget, this month P&G stepped forward to call on big digital players to aid them in proving when digital marketing investment leads to a sale. This call to action came after data revealed the number of people seeing their advertisements and the longevity of viewing them. Speaking in an interview with Marketing Week, P&G’s chief brand officer Marc Pritchard outlined his aspiration to use the latter mentioned big players to get “a consumer signal that helps [them] make sure that investment actually results in a sale”.
Pritchard goes on to discuss his mission to change their relationship with agencies; whilst they had made the decision to lower budgets this did not diminish their desire to work closely with agencies and their willingness to pay for the creative talent needed. P&G seek to design homogeneity between media and creative working, in order to aid getting the consumer signal to show investments are creating sales and not just additional frequency.
As the industry begins to become more digital, question arise as to whether current models are the appropriate ones to follow; this is true to the likes P&G despite the company being market leaders. The multi-national company are looking to disrupt traditional mass marketing and lead the movement to reinvent the concept for other larger companies that have also perfected mass marketing. A transition such as this means that the right agencies will play a key part in helping not only in the development of the disruption but sustaining the changes being made and optimising digital marketing to ensure Pritchard achieves his goal.
A movement from such a large company carries thought to who, if any, follow suit and home-in on their marketing to stay relevant and ahead of digital strategies to ensure their investments create results. Evidentially, it seems P&G had a focus on how much they were spending, rather than what they were spending their money on; creating a balance between both data analysis and creativity within marketing is essential to generate leads. Creativity provokes interest from potential customers whilst analysing patterns and data allows the marketing communications to be directed to appropriate target. Experienced agencies can work seamlessly with a business to support the brand and assist decision making to optimise spending in digital markets. This reigns true for businesses of all sizes and successes; market leaders or start-up, relationships with agencies can play a vital role in improving or sustaining the success of an organisation. As the digital world continues to develop and become increasingly prominent and essential for all industry sectors, B2C and B2B organisations, understanding what marketing can do for businesses with digital data analysing will grow increasingly important. It is paramount however, that creative aspects are not lost within algorithms and the fundamental purposes of marketing creating engagement with potential customers is not forgotten. Without creativity to capture and inform, no matter if directing towards at the ‘right’ leads, advertisements will become lost in the saturation of communications that customer receives.