Procter & Gamble cutting adspend and moving it online?
It was on the WSJ a couple of days ago. P&G, a big fish in the advertising market, is rumored considering cutting ad spend this year by as much as 10%. No surprise here, considering real estate and finance are having what could be defined as a “soft” year to say the least. Apparently, retails and pharma are joining them in terms of “soft market”.
More interesting, it seems that P&G is moving dollar aggressively to the web, although an official spokesperson would not confirm.
On the other side, a recent report published by PubMatic, as US company that optimizes adnetwork placements and website inventory management, shows eCPM falling dramatically in the last couple of months, hinting at troubles in the online advertising space or, at least, in the adnetwork space.
Unfortunately there isn’t much about the methodology and panel used by PubMatic, so it is quite tricky to assess how much comprehensive their data are. Also, only adnetworks are tracked, so nothing can be said about the really big Internet properties. And many publishers put only remnant inventory (i.e. low value) on adnetworks.
Sure, there is a slow down in finance and real estate (they would be crazy to keep on spending as they were, especially considering that they are not letting money or managing any house sale!), and in the broader economy as well, but I am not sure whether it will impact the online word significantly.
When money is scarce, people look for more efficient ways to use them, and Internet appears to be one of them, so it may well benefit from a slow down. If not in absolute terms, probably in relative terms.
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