Last week I came across the news that Proctor & Gamble decided to lay off 1,600 employees after discovering that it’s free to advertise on Facebook. It made me wonder if P&G is going to fully rely on digital for most of its marketing efforts.
Procter and Gamble has the world’s largest annual advertising budget, at $10 billion, most of which is spent on traditional media. That aside, advertising on Facebook and Google is “more efficient” according to CEO Robert McDonald. One example would be the 1.8 billion free impressions that the Old Spice campaign received. However, according to an Ad Age article from last summer, while YouTube videos of the Old Spice campaign have been viewed by millions of people, it hasn’t necessarily translated into more sales.
I believe that while it’s important to make a bigger push into digital media, brands such as Procter & Gamble cannot solely rely on digital marketing. I believe that as time goes by digital will play a bigger role in all ad budgets, but it should be seen as part of an overall marketing strategy, rather than the sole component of any marketing efforts.