How Could P&G Spend 8.2 Billion A Year on Advertising? What Does It Mean? (2)


On Nov.11, P & G invited super star Wang Kai(actor of Langyabang) and Zhang Yixing (member from Kpop group EXO) to promote two new products from OLAY and motivate consumers to follow OLAY online. All this through a series of activities, such as getting autographs from stars and taking photos with them or winning concert’s tickets…fans who wish to have access to this would have to follow OLAY Flagship Store on social media first.

Stimulated by these activities, buzz was created on the Microblog, including 170000 reposts, 34000 discussions and 24000 likes. Data from P & G showed that of Nov 11thit only took 15 minutes to sell out 10,000,000 products via OLAY online store, compared to the 74 minutes it took last year.

“In a digital media world, nothing is the same as before. For example, it used to cost a company from 6 months to 1 year to raise awareness about a new product; yet time needed for this phase is greatly shortened now”. In the traditional ad mode, P & G designs their ad in a way closely related with the product itself, but for staying connected with their customers, now they have to add more popular topics connected to consumers’ daily life into the ads.

“You need to keep up with the latest news every day and make sure that your brand’s promotion is somehow associated with the trending topics. If you don’t see any related hot elements in your promotion, you will lose a golden chance for advertising

“For us, e-business is more than a distribution channel, it’s also a very important marketing platform”

A general trend is that younger consumers are becoming the main drivers for the whole E-business market. “64% of the total sales comes from 18-24 years old consumers, while 25-29 years old consumers constitute 20% of it” according to a data analysis on E-business platforms.

“Nowadays, every e-business platform is regarded as a marketing platform and we expect it will keep performing strongly in the new year2016” Stated by Adil Zaim, CEO of Carat China. “Traditionally, , the line between marketing and E-business is blurred, although the latter operates independently. At present, companies tend to establish dedicated e-business teams and provide extra budget for promotion and transmission, so as to gain additional revenue from e-business”.

P & G positions E-business as an integrated business. “We have a special director to lead the E-business and integrate all the resources of the company, including marketing and sales” said Xu Youjie, “E-business is more than a distribution channel, it’s also a very important marketing platform”.

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