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Recommended: Contribution of the internet in marketing

According to Marketing Week (Vizard, 2014) chief finance officer, Jon Moeller, speaking on an earnings call, stated that Procter & Gamble (P&G) would continue to increase its presence in the digital and social media arenas to the tune of 30 percent of its global marketing budget. This equates to $2.91 billion dollars of P&G’s $9.7 billion (www.redbooks.com) annual ad spending. Moeller stated the purpose for this shifting of advertising revenue (Vizard, 2014, p. 4) to digital marketing as follows:
"Digital allows very effective and tighter targeting of a message to a consumer. If you think simplistically about men and women, in TV advertising that is going to everybody. You can much more carefully target content to a recipient in a digital environment."
This shift in philosophy from traditional advertising, print, TV and radio could be the product of a changing world that is becoming more social and message delivery is now primarily done via the Internet. Or the shift could be one that is taking advantage of the lower cost of digital marketing versus traditional. It is most likely a combination of both. As Moeller stated digital marketing allows a company to target specific segments of society to advertise to versus mass media avenues. Utilizing the social aspects of digital marketing should reduce overall marketing costs.
Social media is all about word of mouth. If a manufacturer the size of P&G can target it’s advertising to people who actually use their products or those who use similar products this in theory should cut advertising costs. P&G could then customize an ad campaign specifically for these consumers versus having to appeal to a broad audience. P&G could become more creative in their appeals for people to...

... middle of paper ...

...it is traditional TV, print or radio or online marketing is really about likeability. Does the consumer like our company? Why or why not? Online marketing provides the greatest opportunities in the history of advertising. With instantaneous feedback from consumers companies can immediately know if a product or service is hit or miss and can adjust more quickly then ever before.

Works Cited

Laury, D. (2013, July). Digital ROI: What We Can Learn From Procter & Gamble [Blog comment]. Retrieved from http://www.gearylsf.com/press/digital-roi-what-we-can-learn-from-procter-gamble/
Vizard, S. (2014, January 24). P&G Invests 30% of media spend in digital. Marketing Week (Online Edition), 4. Retrieved from http://web.b.ebscohost.com/ehost/detail?vid=16&sid=811d13d0-570c-4b2e-ae99-81dcb5188b62%40sessionmgr198&hid=108&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=94073113

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