How Could P&G Spend 8.2 Billion A Year on Advertising? What Does It Mean? (3)


This year, high end shaver brands under P&G have launched a relatively young product during "11.11". They made trans boundary cooperation with the leading singer of a famous band "May Day" and launched a series of limited edition products.

From this trend, we can easily find that the e-commerce has become a bridge linking consumers and products. If the enterprises can utilize e-commerce properly, they can achieve both sound sales and a solid reputation.

With increased advertisements on e-commerce, a great part of their budget goes into advertising rather than promotion. That also should be a part of overall media plan attribution report.

The influence of TV advertising should not be taken lightly

According to Carat 2017 ad spending forecast, TV advertising spending accounts for 51% of total advertising compared to a 56% decline in this year. "But that does not mean that the cost of advertising on television declined," Zheng Yadi said, "Chinese TV advertising spending growth slowed in the past five years, but it still showed a slight growth. As more money spending on digital channels, only TV Ads dropped compared to other media expenditures. "

According to Xu, products like washing powder or laundry detergent are more suitable for television advertising. As for similar products, such as laundry gel beads, it is a change of consumption habits, so it is easier for young people to accept it, which means its presence on digital media will increase on. Generally speaking, there is no such a thing as standard advertisement; therefore, according to the different product positioning, different advertising and marketing combinations will appear.

However, for P&G as well as the whole FMCG industry, their market share is gradually losing its influence, or at least it is not as prosperous as before.

Although the FMCG industry still accounts for the highest bidding (19%) in the market, the total amount bid fell by 31% compared to the previous year. Compared to "News Network" and "weather forecast", more FMCG brands flock to local TV stations variety show.

"We are very confident that FMCG industry does not only depend on the innovation of the hard drive, it's just a gimmick." Nils Roehrig said. Greg also expressed a similar view, "this is more like a brand exposure to the public, and nothing related to sales. Pepsi, for instance, already interested in launching its own mobile phone, may want to know the behavioral consumption of young people.

For P & G, we may go back to the top if we can solve the problem in a short time. "Even though everyone looks at P & G as the giant in this industry, in fact, we have been working to be an elephant that can dance." Xu Youjie said.

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