P&G Slashes Digital Ads by $140M Over Brand Safety. Sales Rise Anyway

By jneff@adage.com (Jack Neff)


Procter & Gamble’s concerns about where its ads were showing up online contributed to a $140 million cutback in the company’s digital ad spending last quarter, the company said Thursday. That helped the world’s biggest advertiser beat earnings expectations. Perhaps even more noteworthy, however, organic sales outperformed both analyst forecasts and key rivals at 2% growth despite the drop in ad support.

P&G didn’t call out YouTube, the subject of many marketers’ ire earlier this year, in its fiscal fourth-quarter earnings release, but did say digital ad spending fell because of choices to “temporarily restrict spending in digital forums where our ads were not being placed according to our standards and specifications.”

Those cuts amounted to nearly a percentage point of profit margin for the quarter, with cuts to agency and production fees further boosting profits.

Procter & Gamble’s concerns about where its ads were showing up online contributed to a $140 million cutback in the company’s digital ad spending last quarter, the company said Thursday. That helped the world’s biggest advertiser beat earnings expectations. Perhaps even more noteworthy, however, organic sales outperformed both analyst forecasts and key rivals at 2% growth despite the drop in ad support.

P&G didn’t call out YouTube, the subject of many marketers’ ire earlier this year, in its fiscal fourth-quarter earnings release, but did say digital ad spending fell because of choices to “temporarily restrict spending in digital forums where our ads were not being placed according to our standards and specifications.”

Those cuts amounted to nearly a percentage point of profit margin for the quarter, with cuts to agency and production fees further boosting profits.

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Source:: Advertising Age Digital

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