Procter & Gamble

Amazon is courting advertisers with video ads, external links

After years of speculation and predictions about Amazon’s ability to become a digital advertising powerhouse, it’s happening.

The online retail giant now has annual ad sales exceeding $2bn, and advertising is its fastest-growing segment. With over half of consumers starting their product searches on Amazon, there’s every reason to believe that Amazon’s ad revenue will continue to grow.

Is WPP the canary in the coal mine for the global ad business?

On Wednesday, the world’s largest ad agency holding company, WPP, spooked investors by warning about a slowdown that it projects will result in dismal sales growth of 1% or less.

Shares of the firm plummeted the most in a single day since 2000 and are now down by more than 20% this year.

P&G sheds 1,600 jobs as it cuts ad spend

Procter & Gamble (P&G) is to lay off 1,600 staff as part of a cost cutting exercise that will also include a re-evaluation of the company’s $10bn ad budget.

It comes as P&G chairman Robert McDonald revealed to analysts that the company had somewhat belatedly recognised the cost efficiency of digital marketing.

Proctor & Gamble’s new e-store markets directly to consumers

Household goods manufacturers have long sold their products to consumers through middle men, whether it be pharmacies, chains, department stores or individual resellers. But in a world increasingly connected to the internet, why not go direct to consumers? 

That’s an approach that Proctor & Gamble is trying with a new site that went live today. Consumers can now purchase any P&G product for a flat shipping rate of $5. But do consumers have the kind of manufacturer loyalty that will make this a popular shopping method? P&G thinks it’s worth finding out.

Q&A: Jim Stengel on purpose driven brands and the state of marketing today

Jim Stengel spent seven years as the global marketing officer at Procter & Gamble and is
largely credited for transforming P&G into one of the most admired
brand-building companies in the world. He is now president of Jim Stengel, LLC, a think tank and a consultancy that focuses on proprietary research and ways to drive business growth in the current economy. He is also a director of the Motorola Corporation and serves on the Board of Advisors for MarketShare Partners, a marketing analytics firm.

His new book ‘Packaged Good’, which is set to come out next year, examines the role that purpose driven marketing plays in growing market share for brands.

This week, he was appointed as an adjunct marketing professor at UCLA’s Anderson School of Management. Starting next January, he will teach brand marketing to graduate students at the university.

Econsultancy caught up with the marketing guru to see what his plans are at UCLA and what role purpose driven marketing can play in a downturn.

How do you sell razors to men who don’t shave? Ask P&G

How do you increase sales for a product that is already the leader in the market?
Increase interest in the market. That’s what Procter & Gamble did
when they wanted to grow sales of their razors in India.

P&G’s Gillette razors are the most popular razors in India. But sales had been stagnant for years, mostly due to a natural bias against shaving. Indian men often prefer to avoid razors altogther, choosing instead to grow facial hair.

In addition, the Mach III costs about 10 times more than the competition, a straight razor. So how did P&G jump these hurdles? By growing the market through social media.

The marketing is the message

Welcome to the new blogvertorial. Last week Gawker launched a new blog called BloodCopy, “the blog about vampires by a vampire.” Except this site dedicated to all things vampiric is not a
Gawker property, it’s an ad campaign for the HBO show True Blood.

The copy on the site is not marked as advertising, and is written from the point of view of a vampire. Entries from the blog will be syndicated to Gawker’s Media’s eight properties,
including Jezebel, Gizmodo, and Kotaku. The posts will have a gray
border, but look otherwise just like Gawker posts written by staff
members (save for the vampire obsession).