Starting some years ago, many brands abandoned more traditional means of advertising for the shiny new toys of digital and social media. These tools promised more direct to consumer contact and consumer interaction. And many big brands jumped in with both feet. In fact, Proctor and Gamble, one of the world’s largest, went away from traditional advertising venues and invested 500+ million in digital platforms in 2014, 2015, 2016.
About halfway through 2016, after worldwide sales of P&G Brands were slumping, Proctor and Gamble started cutting back digital ad spending, pulling first 20 million from Facebook. Later in 2017, it cut another 100-140 million from digital due to “bots” and brand safety concerns. These cost cutting measure continued for the rest of 2017 as they cut roughly another $100 million between July and December.
Proctor and Gamble redirected this money into more traditional venues, like radio, in a big way. The result was a 20 percent reduction in “ineffective marketing” and a 10 percent increase in reach. At a 2017 conference, P&G executive John Fix commented: “[P&G and] other CPG giants have grown frustrated by narrow digital-ad targeting. P&G wants to speak to everyone, not a narrow target. P&G wants to reach as much of America as it can, once a week … While TV has been its media cornerstone, it’s a costly investment to use television to reach 72% of the U.S. The brands are looking to get the reach they want and they can’t get it with TV. Knowing that, radio seemed to be an option. You saw 93% of households are listening to radio. That’s the scale I need for my brands to reach the people that buy them.”
According to Nielsen, America’s number one mass reach media is AM/FM radio. It is bigger than TV and bigger than social and online video. AM/FM radio’s massive reach is lost on most advertisers. Why are businesses so out of sync with actual consumer media habits? Proctor and Gamble has figured it out, in 2017 PG was the 39th biggest advertiser on radio. Last year, they shot up to 5th place. Perhaps they know something and maybe we should all stand up and take notice.
And they aren’t the only ones. Here are the top advertisers from last year. 1. US Government, 2. Live Nation (concerts), 3. Home Depot, 4. Berkshire Hathaway (under many operating units – but Geico is the biggest one here), 5. Proctor & Gamble 6. JC Penney 7. Indeed.com 8.Lowe’s 9. Macy’s 10. T-Mobile 1 11. Walgreens 12. McDonalds 13. Fiat/Chrysler 14. Staples 15. AZ State University 16.Auto Zone 17. Progressive Insurance 18. CVS 19. AT&T 20. Kroger 21. O’Reilly Auto Parts 22. Comcast 23. Yum Brands (KFC/Pizza Hut/Taco Bell) 24. Amazon.com 25. TracFon
Want to know what these companies already know? Call us at 765-637-2143. We can sit down with you and devise an effective strategy with a singular message to drive this kind of consumer reach and impact for your business, right here in Greater Lafayette.
Neuhoff Media Lafayette
Certified Radio Marketing Expert