Procter

US Total, Digital Ad Spend See Solid Expansion

source: http://www.emarketer.com/Article/US-Total-Digital-Ad-Spend-See-Solid-Expansion/1010217

AT&T tops L’Oréal as second-place advertiser

For the first half of 2013, Kantar Media estimated that the total US ad spend market rose 2.0%, compared with the same period one year earlier. But Q2 2013 was notable for an even faster rate of increase, at 3.5% over Q2 2012, suggesting that the ad spend market may be gaining some momentum.

TV ad spend expanded even faster than digital display spend in Q2 2013, growing 6.4%, vs. 4.1% for digital display. Big winners among the TV segments included cable TV, which jumped up 10.1% in H1 2013 over that period in 2012, and Spanish-language TV, which grew 9.4%.

For H1 2013, digital display ads saw a 5.3% increase. But this estimate excludes video and mobile ads, two digital formats that are seeing among the biggest bumps in investment, suggesting that total digital spending rose by significantly more than the figure cited for display only.

Retail remained the top spending ad category, but growth in Q2 2013 was minimal compared to a year prior, at only 0.1%. The telecom industry grew fastest, at a 19.5% rate, and restaurants and insurance also grew ad spend by double-digit percentages.

As for which companies were shelling out the most cash for ads, Procter & Gamble was the top spender, putting up $804.8 million in Q2 2013, and it was also No. 2 for growth, increasing outlays over Q2 2012 by 35.3%. Only Pfizer, the No. 10 advertiser, increased spending by a greater 54.0%. AT&T made a significant ad investment in Q2, upping spending by 33.2% to become the No. 2 advertiser in the US, edging out L’Oréal, whi! ch was No. 2 a year earlier. L’Oréal increased spending by a relatively meager 4.6% in Q2 2013 over Q2 2012.

eMarketer estimates that total US ad spending will grow 3.6% this year, which is in keeping with Kantar’s estimate of Q2 performance, but ahead of its half-year projections. eMarketer’s inclusion of all digital formats may account for some of this difference in spending estimates. Kantar put total ad spending for the year at $68.9 billion. eMarketer expects full-year 2013 ad spending to reach $171.0 billion.

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Monday, September 16th, 2013 news No Comments

Primary Campaign Goal of CPG is Brand Awareness

Because CPG brands are primarily purchased in physical stores, awareness-focused campaigns are typically more effective than direct response.

For CPG advertiser Procter & Gamble, mobile video advertising is a beneficial tactic to drive user engagement.
Read more at http://www.emarketer.com/Article/CPGs-Mobile-Ads-Meet-Awareness-Goals/1009846#JZBAiJtY0GD6Z7Vs.99

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Monday, April 29th, 2013 news No Comments

Ford, P&G And Others In Full-Scale Revolt Against Ad Price ‘Arbitrage’

Source: http://www.businessinsider.com/ford-pg-and-others-in-full-scale-revolt-against-ad-price-arbitrage-2013-4

Arbitrage

Half a dozen major advertisers — Procter & Gamble, Ford, Citibank, Unilever, Kimberly-Clark, and AT&T — have pulled their ad dollars from online ad agency trading desks because those agencies can’t explain how their money is actually being spent, according to a must-read, in-depth report from Adweek’s Mike Shields.

The agency trading desk issue is complicated and obscure, but it involves millions of dollars in web advertising placed by blue-chip brands.

We recently reported on the growing unrest on Madison Avenue over the way some web ad agencies decline to tell their clients the original price of the web ad inventory they’re buying. Agencies buy the media upfront with their own money. They then slice and dice it, according to data they’ve gathered themselves, making it more targetable and thus more valuable. the media is then sold at a premium to clients.

Clients don’t know what the original price was — and thus, nor do they know what the agency’s markup is.

Critics call this practice “arbitrage” or “frontrunning.”

In their defense, agencies say they ad value to the inventory by generating their own analstics and data. They take the risk of not selling the data when they pay for it with their own money. Clients aren’t forced to buy it — they can take it or leave it. And the practice should be judged on a performance basis, as most clients use trading desks as but one part of a larger strategy. The fact that the original pricing is undisclosed is written into contracts upfront, ! too. GroupM CEO Rob Norman told us many of his clients are on a “non-disclosed basis” when it comes to pricing.

But the problem is that where there is a lack of transparency, there’s a lack of trust. Adweek writes (emphasis added):

One tech vendor … described a recent conference call during which a client grew exasperated with its agency, which was unable to provide even basic details about where its ads were being run — since they were being purchased via an agency trading desk.

For example, according to sources, Kimberly-Clark has insisted that its digital agency of record, Mindshare, handle all of its audience buying, rather than Xaxis. AT&T has made the same request of its GroupM shop MEC. Bob Arnold, Kellogg’s global digital strategy director,

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Wednesday, April 10th, 2013 news No Comments

The World’s Biggest Consumer Goods Company Shows That Growth In Developed Markets Is Tanking (PG)

Source: http://www.businessinsider.com/chart-of-the-day-developed-market-growth-for-proctor-and-gamble-2012-6

Proctor and Gamble unexpectedly cut guidance this morning, sending shares down in pre-market trade.

In a statement, Procter said “the revisions to the Company’s fourth quarter outlook are primarily driven by slower than anticipated top-line growth from slower than expected market growth rates and market share softness in developed regions and negative impacts from foreign exchange rate changes.”

Translation: high unemployment coupled with slow-to-no GDP growth in developed markets are destroying the top line.

At a Deutsche Bank panel today, Procter plans to show this slide that sums it up pretty nicely.

Procter & Gamble Guidance

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Wednesday, June 20th, 2012 news No Comments

P&G To Lay Off 1,600 After Discovering It’s Free To Advertise On Facebook (PG)

Source: http://www.businessinsider.com/pg-ceo-to-lay-off-1600-after-discovering-its-free-to-advertise-on-facebook-and-google-2012-1


old spice

Reality appears to have finally arrived at Procter & Gamble, the world’s largest marketer, whose $10 billion annual ad budget has hurt the company’s margins.

P&G said it would lay off 1,600 staffers, including marketers, as part of a cost-cutting exercise. More interestingly, CEO Robert McDonald finally seems to have woken up to the fact that he cannot keep increasing P&G’s ad budget forever, regardless of what happens to its sales.

He told Wall Street analysts that he would have to “moderate” his ad budget because Facebook and Google can be “more efficient” than the traditional media that usually eats the lion’s share of P&G’s ad budget.

This is coming from the man who increased P&G’s adspend by a staggering 24 percent over the two years through October 2011, even though sales rose only 6 percent in the same period.

Note that P&G’s revenues were up 4 percent to $22 billion in the quarter but the company’s costs for sales, general and administrative work were flat.

P&G’s staggering ad budget has become a bit of an issue among analysts. On the call, McDonald and his crew were asked about ad costs three different times! . McDonald eventually said:

As we’ve said historically, the 9% to 11% range [for advertising as a percentage of sales] has been what we have spent. Actually, I believe that over time, we will see the increase in the cost of advertising moderate. There are just so many different media available today and we’re quickly moving more and more of our businesses into digital. And in that space, there are lots of different avenues available.

In the digital space, with things like Facebook and Google and others, we find that the return on investment of the advertising, when properly designed, when the big idea is there, can be much more efficient. One example is our Old Spice campaign, where we had 1.8 billion free impressions and there are many other examples I can cite from all over the world. So while there may be pressure on advertising, particularly in the United States, for example, during the year of a presidential election, there are mitigating factors like the plethora of media available.

P&G’s Old Spice campaign is a textbook example of what the entire company should be doing. The problem is that the entire company isn’t doing it. Check out Mr. Clean’s Twitter stream, for instance. Oh, right—he doesn’t have one.

McDonald’s recent discovery that digital media is free comes after the long-delayed launch of Tide Pods, now scheduled for a month from now but with only a limited supply. It was originally planned for July 2011. The ad budget for that campaign is estimated at $150 million and will come from agency Saatchi & Saatchi.

The problem is that while P&G has struggled to get a single U.S. pod out the factory door, several of its competitors have already launched competing laundry pod products.

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Monday, January 30th, 2012 news No Comments

US Moves Toward Banning Photoshop In Cosmetics Ads (PG)

Source: http://www.businessinsider.com/us-moves-toward-banning-use-of-photoshop-in-cosmetics-ads-2011-12


ann ward cover girl

Procter & Gamble has agreed to never again run an ad for its CoverGirl mascara because it used “enhanced post-production” and “photoshopping” to make eyelashes look thicker than they were in real life. P&G agreed to the ban even though it disclosed in the ad that the image was enhanced.

The move is the latest in a series of baby steps that U.S. and international advertising regulators have taken to ban the use of Photoshop in advertising when it is misleading to consumers.

The company’s decision was described in a ruling by the National Advertising Division, the U.S. industry watchdog that imposes self-regulation on the advertising business. NAD is part of the Council of Better Business Bureaus. Its rulings are respected and followed by most advertisers because it enjoys a close relationship with the FTC, from which it has historically drawn some of its senior staff. Recalcitrant advertisers who refuse to withdraw or amend misleading ads are referred by the NAD to the FTC, which has the power to fine, sue or bring injunctions against companies.

When asked whether this was a de facto ban on Photoshop, NAD director Andrea Levine told us:

“You can’t use a photograph to demonstrate how a cosmetic will look after it is applied to a woman’s face and then – in the mice type – have a disclosure that says ‘okay, not really.’”

The ad in question was for CoverGirl NatureLuxe Mousse Mascara, which promised “2X more volume” on women’s lashes. After reviewing the ad, P&G agreed to yank it. (A different CoverGirl ad is shown here.) The NAD ruling said:

“… [P&G] advised NAD it has permanently discontinued all of the challenged claims and the photograph in its advertisement. NAD was particularly troubled by the photograph of the model – which serves clearly to demonstrate (i.e., let consumers see for themselves) the length and volume they can achieve when they apply the advertised mascara to their eyelashes. This picture is accompanied by a disclosure that the model’s eyelashes had been enhanced post production.”

In a footnote, the NAD said it was following the lead of its sister body in the U.K., the Advertising Standards Authority, which in July banned cosmetics ads featuring Julia Roberts and Christy Turlington because they used Photoshop. The NAD said:

“Advertising self-regulatory authorities recognize the need to avoid photoshopping in cosmetics advertisements where there is a clear exaggeration of potential product benefits.”

“… the picture of Ms. Roberts had been altered using post production techniques (in addition to professional styling, make-up, photography and the product’s inherent covering and smoothing nature which are to be expected), exaggerating what consumers could expect to achieve through product use.”

The U.K. ruling found the use of photo retouching misleading per se.

In the U.S., the FTC has has also tightened rules to hold celebrities accountable if they make claims in ads they know cannot be true.

And in France, in 2009, 50 politicians asked for health warnings to be imposed on fashion ads if they showed retouched models’ bodies.

SEE ALSO: Ryanair: ‘We Will Continue To Support The Right Of Our Crew To Take Their Clothes Off’

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Friday, December 16th, 2011 news No Comments

This Chart Is Driving Apple Bulls Crazy (AAPL)

Source: http://www.businessinsider.com/chart-of-the-day-apple-pe-2011-12

Apple’s price to earnings ratio is at a relatively paltry 14 right now, and it’s driving Apple bulls crazy.

The chart below, which shows Apple’s shrinking PE, from Apple analyst Andy Zaky has been passed around for the last week. (At the time Apple’s PE was 13.3.)

What’s wrong with this chart?

Zaky explains: “Now even though Apple’s growth has far and outpaced the growth of Oracle (16.35 P/E), Amazon (96.15 P/E), Google (19.19 P/E), Cisco (15.11), Qualcomm Inc. (20.62), Amgen, Inc (13.53), Comcast (15.11 P/E), IBM (13.95 P/E), Chevron (13.50), Johnson & Johnson (14.94 P/E), Procter & Gamble (15.49 P/E), and AT&T (13.91 P/E), the stock trades at a far lower valuation relative to these top holdings on the NASDAQ-100 and S&P 500. Some of these companies have actually contracted in 2011. Yet, the market values the earnings out of these companies on the order of 4-5 times more in some cases than they value the earnings out of Apple.”

Of course, there’s more than one way to value a stock. If you value it based on trailing free cash flow, it’s arguably priced fairly, says our Henry Blodget.

chart of the day, apple quarterly p/e ratio compression, dec. 7 2011

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Wednesday, December 7th, 2011 news No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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