Procter and Gamble (P&G) spends more than $7 billion per year on advertising, more than any other
Question:
Procter and Gamble (P&G) spends more than $7 billion per year on advertising, more than any other company in the world. For years, an increasing amount of that budget was being shifted away from television and toward online ads, including Facebook. Facebook ads offer companies the ability to precisely target ads to subgroups of shoppers, such as teenagers, new moms, and pet owners. At one point, P&G's digital ad spend was well more than $1 billion. Then, the company reversed course in the last few years.
In 2017, P&G announced it was cutting digital ads. By the end of 2017, it had cut $200 million in digital ad spending, moving some of those savings back over to other forms of promotion. Marc Pritchard, its chief brand officer, cited a number of reasons, including:
Concerns about brand safety: Top companies are wary of their brand becoming associated with the large amounts of controversial and inappropriate content that appears on social media platforms such as Facebook and YouTube.
Concerns about digital ad fraud: Companies are charged for views, however, P&G discovered that the average view time for a mobile ad on Facebook was only 1.7 seconds. In addition, some users were seeing P&G's ads an excessive number of times.
Concerns about the fit of the digital medium for their audience: Pritchard said, "We targeted too much, and went too narrow…now we're looking at: What is the best way to get the most reach but also the right precision?
A. P&G’s concern about some users seeing P&G ads an excessive number of times relates primarily to which consideration for selecting media choices for a promotional campaign?
Lifespan
Frequency
Flexibility
Reach
B. The pullback in digital ad spending was because P&G felt it went too narrow with targeting. For a massive consumer brand like P&G, overall reach is important because getting max-imum reach is the only way to maintain or grow market share. Based on that goal, it’s likely some of its ad spend shifted to which medium?
Radio
Television
Internet
Magazines
C. With some of that digital ad spending now reallocated to a medium with a larger reach, P&G needs to decide on a media schedule. In particular, it wants to spend money on its Vicks brand of cold and flu medicine. Since Vicks ads already run year-round, P&G decided to use its additional funds to simply boost the number of ads during the best sales periods of the year—which includes the months of October/November and a similar period during February/March. What type of media schedule is this?
Pulsing
Flighted
Continuous
Seasonal
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta