Procter & Gamble Cutting Spending on Facebook Ads
Procter & Gamble has concluded that using Facebook ads to target specific consumers has limited effectiveness. The biggest advertising spender in the world will now move away from targeted Facebook ads. Facebook has spent years developing its ability to zero in on consumers based on demographics, shopping habits and life milestones, but P&G Chief Marketing Officer Marc Pritchard said the company took the strategy too far. Pritchard said P&G won’t cut back on Facebook spending, but will employ targeted ads where it makes sense — e.g., pitching diapers to expectant mothers.
Total Retail’s Take: P&G could be a great example on how CPG companies and other big brands can use digital advertising to their advantage. Instead of spending too much time and money on targeting specific Facebook users, brands can follow P&G’s lead and widen its target audience. P&G has also begun putting more money into TV ads, broadening its reach even further.