Will Digital Advertising Put an End to Media Spending?

Procter & Gamble (P&G) is an example of a major company taking digital advertising seriously and betting on the format as the area of focus for their marketing spending. In an article by Jack Neff from Adage.com, chairman and CEO of P&G estimated that they now spend 35% of their significant marketing budget on digital. The spending spans online search efforts, social media, online video, and mobile – among other costs.

As a packaged goods company, P&G has always used T.V. and magazine ads to get the word out. Recent studies have shown that many successful brands are finding that digital forms of advertising are effective and worth their marketing budgets. The strategies involved in digital advertising require companies to diversify their efforts and approach the same campaign from different angles, on different platforms and measure results in different ways. The transition from a linear or print ad campaign to a digital one will require testing in order to gauge reach and effectiveness.

One thing to note is how little of digital spending involves media spending. Media spending (on a specific publication site or TV channel or streaming service site) is becoming  a smaller portion of digital advertising. It involves big production costs, budgets, and in many cases work with media buyers (agencies) to create and/or buy and/or track campaigns. Digital expenses, at least in this case, are mostly mobile ads, social media advertising and other non-traditional media platforms that do not require  specific media spending.

Digital has made it easier to advertise products and services and to track the effectiveness of the campaign. Traditionally, paid media was the only way to advertise in print and linear media models and it will be interesting to see how this alternative to big production costs stacks up. The trend of consumer interaction with media has moved the bulk of advertising efforts to those areas where media buying is no longer the way to go. That being said, it is unclear just how effective it will be in the long run and if the trend will stick.

Read the full article: Does P&G Really Drop 35% Of Its Marketing Dollars on Digital?

By | 2018-07-06T17:50:09+00:00 August 27th, 2013|Uncategorized|0 Comments
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Contributor: Adolfo Ramirez

As AKA's Media Practice Lead for more than a decade, Adolfo is an experienced consultant and project manager with a history of successful CRM and ERP projects across media and other industries. With 17 years of experience working with the Microsoft business platform, he is responsible for leading his team in designing, building, and implementing solutions that help media companies drive value.

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