This is why conversion tracking is really important – P&G decides to stop wasting $100m on “largely ineffective” digital ads
We never cease to be amazed by how marketing departments in the Fortune 500 burn through their money. You know, online there is such a thing as conversion tracking using tools like Addue which can be set up in minutes and used to track pretty much anything worth spending advertising dollars for. (Hint: if you can’t track it, you’re wasting money. “Mindshare” is a figment of your mind’s wild imagination.).
The latest company that figured out they’ve been taking themselves for a ride is apparently Proctor & Gamble, which recently noticed that it’s massive $100m in digital ad spend wasn’t actually making a difference to the bottom line…
Read the full article here: https://www.wsj.com/articles/p-g-cuts-more-than-100-million-in-largely-ineffective-digital-ads-1501191104
Amazing how this kind of stuff keeps happening. All ads should of course be tied to a conversion of some kind and rigorously measured for performance against that on a continuous basis. If you can’t track a conversion, it’s far better to assume it hasn’t happened than to hope for a conversion you’re not aware of. P&G probably thought that since most of its products get sold offline, it’s online ad spend would somehow drive those offline sales higher. And they probably did, marginally, but likely nowhere near anything close enough to justify the cost. What they should have done was to set up an ecommerce channel to go with those ads to at least finance the cost of the ads on a breakeven basis. Ever heard of monthly subscriptions, P&G advertising department? We hear some of your upstart competitors are doing pretty well with those selling razors and stuff.
If your company needs help with your online advertising to avoid costly errors like these, or if any of the above isn’t clear, just drop us a line at Traffikoo – we’d be happy to help. This is what we do.