Marketing Madness

P&G Sales Rise While Cutting $140 Million from Digital Ad Spend

P&G has been getting a lot of press in the online marketing world for their decision to pull back on their massive ad budget due to issues with transparency and fraud in the digital ad industry. In the last reported quarter, they reduced their digital ad budget by $140 million. Many in the industry believed this was a mistake, but it seems that this isn’t the case.

Despite the significant reduction in digital ad spend, their sales went up by 2%, which is more than the analysts predicted. In the earnings call, the CFO, Jon Moeller, specifically said that they were happy with the results and that they didn’t, “need to be spending money that is seen by a bot and not by a person.”

Other companies have followed suit and cut some of their digital ad budgets because of the issues related to fraud and other non-humans seeing their ads. This has been a major concern for many in the digital ad industry for years, and while some action has been taken to address the issue, clearly more needs to be done.

P&G has said that they want to cut their planned marketing spending by as much as $2 billion over the next five years. This is a massive cut, and much of it will undoubtedly come from digital.

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Michael Levanduski

Michael Levanduski is the assistant editor of Performance Marketing Insider, and an experienced freelance writer. He writes content for a wide range of sites in virtually every niche, though he specializes in technical writing as well as creating content for the performance and internet marketing industry. Michael was born in Grand Rapids, MI where he still lives with his wife and three children.

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