Reports
coming from inside sources says that Procter and Gamble Company is aiming to
buy about 70% of its digital advertisements which are U.S. based by the end of
2014. This is a very bold and visionary step that the company is planning to
take by the massive media spenders of the world; hence it will be significant
on multiple fronts. A couple of facts are mentioned below before explaining as
to why it will be significant for the company to buy its own digital ads:
1)
P&G is known
as a brand advertiser and not as a direct-response advertiser.
2)
The utilization
of the process of programmatic buying for the company is only confined to carry
out small tests.
Hence,
doing so will be an essential investment from the company would transform the
perception of the brand marketers who have opposed the idea of automated
trading. Eventually, they will reconsider it sooner or later. In the near
future, P&G is planning to transform itself from mobile ad buying to
programmatic buying. It will be a platform where ads will be supplied as well
as bought in the real time. Analysts have predicted that the Procter & Gambler stock price might
increase as buying its digital ads in U.S. media will be beneficial for the
company. However, recently the Procter and Gamble stock quote
has faced a downfall by 0.06%.Investors
feel safe even if P&G plans to take this step or any step which is regarding
digital or otherwise. The Procter &
Gamble stock price increased by 5% ever since the news came out. Moreover,
the stock of the competitors of the company rose by 3% or 4% in the same
duration. The Kantar Media of WWP says, “&G, which declined to comment,
spent $235 million of its $3.2 billion in measured media last year on internet
display advertising.” It is believed that digital was company’s trademark and
symbol of excellence under the reign of Bob McDonald’s, Chairman-CEO of
P&G. Hence
it is believed that the company is looking forward to maintain its status and
market position by buying 70% to 70% of its own U.S. digital as in the near
future. It is a bold but a very ambitious step which might be beneficial for
the company in the long run as well. Procter and Gamble is looking forward to
move towards programmatic buying regardless of narrow minded brand marketers.
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