The world’s largest marketers have begun to wise-up to the potency and power of online advertising. Proctor & Gamble, who spend $10 billion annually, announced they would be laying off 1,600 jobs and will be relying on digital marketing for savings. P&G is still planning on spending 9 – 11% of sales on advertising, they will just be doing so selectively.
This news came directly from Bob McDonald, Chairman-CEO. The man who had once bumped the marketing spend by 24% stated:
“In the digital space, with things like Facebook and Google and others, we find that return on investment of the advertising when properly designed, when the big idea is there, can be much more efficient”
He also cited the recent Old Spice campaign that netted P&G 1.8 billion in”free impressions.” McDonald also mentioned that there are examples like the Old Spice success from all over the world.
Overall the cuts only make up about 3% of the estimated 129,000 employees. Jon Moeller, CFO, estimated the cuts would save $240 million annually.
For more information on the P&G layoffs see the AdAge report.