Marc Pritchard is a powerful man in the world of advertising. The CMO of Procter & Gamble, the world’s biggest ad spender, has just recently announced that P&G “will move away from ads on Facebook that target specific consumers, concluding that the practice has limited effectiveness.”
That’s an interesting move and it is both, a blow for Facebook as well as a good argument for each and every digital-sceptic marketing person in this world. After all, we watch the world’s number 1 ad buyer move away from Facebook’s targeting mechanism. Don’t we?
But what has actually happened?
In his Wall Street Journal interview Pritchard commented:
“We targeted too much, and we went too narrow,” he said in an interview, “and now we’re looking at: What is the best way to get the most reach but also the right precision?”
Mr. Pritchard said P&G won’t cut back on Facebook spending and will employ targeted ads where it makes sense, such as pitching diapers to expectant mothers. (…)
The social network is able to command higher prices for its targeted marketing; the narrower the targeting the more expensive the ad.”
In other words: this was an ROI problem in the first place. Facebook’s great targeting engine can reach a lot of very specific people for your brand. But it simply is more obvious to target young, suburbian parents with a specific monthly income-bracket if you want to sell a Volvo instead of toilet paper. This simply makes no sense and shows the limitations of targeted ads nicely. This doesn’t mean P&G will cut back on Facebook spending generally. They will probably just stop hyper-targeting people to buy tissues. That’s it.
Everyone chill. Or did anyone really expect that you can sell significantly more toilet paper if you target catholic hispanic turtle-owners from Maine who were recently married?
Well…possibly some people did.
© Gerald Hensel for davaidavai.com, 2016. |
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Post tags: Brands, Facebook, Mark Pritchard, Media, P&G, ROI, Targeting
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The post You Got It Wrong. P&G Did Not Drop Facebook Targeting Last Week. appeared first on davaidavai.com.
