P&G wants to cut a total of $2 Billion in Marketing Agency Costs but that’s not all there is to it - MotionCue
Content Strategy

P&G wants to cut a total of $2 Billion in Marketing Agency Costs but that’s not all there is to it

By October 9, 2017 No Comments

When I first heard about this story, saying I was astonished would be an accurate representation of exactly what I felt. How many times do you get to meet a company whose advertising budget falls in the five-figure brand? If you ask me, I’d say that the executives at Proctor and Gamble are crazy.

Spending $2 billion dollars on marketing alone cannot be justified simply because there are countries, yes, countries that are running each and every year on a budget that is smaller than two billion and everything seems to be on track.

The story behind the cut is somewhat amazing. Why? Because although Proctor and Gamble had such a marketing budget that would make it a formidable force to deal with in any market, the company failed to meet its sales projections and worse still, it kept losing ground in terms of market share growth in emerging economies.

When such things happen especially in big companies, most people would be quick to start pointing fingers at the company’s executives/ VP’s and then the individual marketing departments. And yes, it’s reasonable, because there should be someone to blame but before we look at Proctor and Gamble deeply, it’s important to go beyond them and start analyzing the whole marketing industry and other companies that are operating the same space as P&G such as Walmart and even JC Penny Stores.

Proctor and Gamble, although they had a great budget, an amazing marketing team and a network of agencies to take care of that budget, they still failed to hit their sales projections.

Why is this so? My best bet is that there was a disconnect between the message that was being shared by the company and their customers, which is the same thing happening with Walmart.

These companies are still following tradition whereby they work with a marketing agency that will handle all their marketing processes including communication with the customers. This coupled with the fact that a lot of these marketing agencies have been for decades specializing in only traditional marketing will, in turn, widen the gap between the company and its customers since the company wouldn’t be prioritizing direct communication with the customers through digital media channels.

In short, what I’m simply saying is that the conventional way of handling marketing that used to be a thing in the last 5 or so decades is doing more harm than good for these brands and should be done away with, particularly the system of letting agencies handle the marketing. These brands should start looking at how companies like Amazon are handling their marketing and take a lesson or two and yes, they should do their best to prioritize digital marketing.

A lot of brands have been achieving some pretty impressive results by marketing their products and services online, something that has resulted in increased customer retention for these brands and more, it has also resulted in increased revenue.

Using the phrase internet marketing is pretty broad, so I will double down to analyze content marketing as it basically the most powerful method of internet marketing and can be used by any brand regardless of the size, be it a corner bakery or a massive conglomerate like Proctor and Gamble to produce amazing results that are performance driven.

This explains why over the last 2 years, in 2015 and 2016, content marketing agencies have been spawning and some of them have been doing amazing stuff for a lot of businesses. If you are running a business yourself, here are some statistics that will prove to you that it pays to invest in content marketing.

  1. Over 65% of Marketers Create a Piece of Content Each Day

What does this mean? If you are not doing it, the 65% that are (of which some of them are not doing it intentionally) will beat you at the game and outsmart your business. The reason why startups such as Tesla outsmarted companies like Ford and General Motors is that the startups introduced their own way of spreading their message on their products to the masses while the other companies that were already in the market maintained their guns.

Each company began as a startup and no matter the size of the company and when it was started, if you want the company to remain relevant, then it’s important for the company to do what startups are doing particularly with regards to marketing.

  1. 1 in every 10 Blogposts are Compounding

You’re probably familiar with the concept of compound interest so I will spare you the details on that. Blogging is the backbone of Content Marketing and the best bet if you want to increase traffic to your website. In fact, according to HubSpot, compounding blogposts bring at least 30% of the total traffic to a website which helps increase the number of total leads captured by an average of 12%.

I’d say it’s an easy way to acquire and retain new customers for your company.

  1. Content Marketing can help increase your overall traffic by a factor of 4

Research from the content marketing institute proved that businesses in the B2C sector such as Proctor and Gamble increase their total number of leads generated by creating a total of 11 or more blog posts each month. As if that’s not enough, all of those businesses that are actively involved in Content marketing are outperforming those that are not doing anything.

As if that’s not enough, all of those businesses that are actively involved in Content marketing are outperforming those that are not doing anything.

As you can see from the above, Content Marketing has the capacity to turn around your business. And when we talk of Content Marketing, we are not only referring to blogs. There are also videos and graphics that can be used on Channels like YouTube and Instagram to help your brand reach more prospects and improve revenue in the process.

But although content marketing is defining the present and will surely define the future, how can large brands produce content at large volumes while keeping their costs of doing so low. The answer would be simple. Yet again, structure the company’s marketing and content creation departments like a startup would and get entrepreneurs to run those. After doing so, give them an above average budget and watch them do wonders.

The answer would be simple. Yet again, structure the company’s marketing and content creation departments like a startup would and get entrepreneurs to run those. After doing so, give them an above average budget and watch them do wonders.

Lastly, if you want to change your marketing strategy and reach more prospects whilst keeping your costs low and manageable whether you are a fortune 500 company or a simple startup, then you might consider working with us to help you get stuff done. We will streamline your content creation costs by efficiently helping you manage the whole process.