Why are CPG advertisers cutting back
on digital ad spend?
Just this week, my homework assignment
for a marketing research class was to find a marketing-related article, analyze
and present it. The article I chose
focused on Procter & Gamble and Unilever and how they are both cutting back
on digital advertising spend. Both
companies keep these actual figures private, but there are other indicators
that lead to the conclusion that they are pulling in the reigns:
- P&G overall ad spend has dropped 41% year over year
- Unilever drops 59%
- Both have substantially (>15%) decreased # of websites they advertise on
The obvious conclusion most would come
to is that they are decreasing digital ad spend drastically, but that doesn’t
mean it’s true. Here are some
alternative conclusions I came to based on the data:
- Reducing #
of sites advertised=more precise advertising
- Do
they need to target so specifically though?
- May pull
back the reigns until better metrics become available
- Clear
up the ‘murkiness’ of digital ad supply chain
- Unilever may
just be following suit with P&G
- Historically,
they have copy P&G’s strategies (safe move)
- May
not be as big of a trend based on this
- CPG products are commonly perceived as necessities
Here’s a link to the Google Slideshow I
created regarding this:
No comments:
Post a Comment