Why Procter & Gamble Is Succeeding (Hint: Advertising!)

Why Procter & Gamble Is Succeeding (Hint: Advertising!)

Advertising

Procter & Gamble has exploded analyst predictions for the company’s just-concluded fiscal first quarter. Organic sales are up to $19.3 billion, a jump of nine percent; net earnings have risen 19 percent; and there’s no indication that, as the pandemic grinds on, people are trading down to cheaper products. Why is P&G succeeding? It’s not just because it’s selling the right products at the right time. Read on to learn more about how:

P&G Is Prepared for the Moment

According to statista.com, P&G ranked as one of the Top 5 advertisers in 2019 based on the company’s ad spend. This is important to recognize because, even before COVID-19 was a glimmer on the horizon, the company was keeping in the forefront of consumer’s minds. P&G’s strategy was sound, predicated on the fact that during flu season, people naturally want to stock up on cleaning products. And although the company had no idea a pandemic would soon eclipse the flu in severity, its strategy and preparation mentality, rooted in strong advertising, served P&G well. When COVID-19 hit and consumers rushed to purchase cleaning products, P&G product name awareness was already high.

P&G Never Wavers from Creativity

The company’s advertising isn’t just timely, it’s creative. P&G consistently rolls out innovative, culturally relevant campaigns with digital at the center. For example:

  • During a year when the pandemic has left many older Americans feeling isolated, P&G’s Ivory brand launched an Acts of Gentle Kindness initiative to support and uplift seniors through distribution of “Ivory gentle care packs.” The packs, which included an assortment of Ivory products, cozy accessories like socks, and puzzles/brain games, celebrated World Kindness Day by focusing “on spreading positivity.” For the initiative, Ivory partnered with TV personality Catherine (Giudici) Lowe and Cavanaugh Bell, the seven-year-old Chief Positivity Creator at nonprofit organization Cool & Dope. Both encouraged families to get involved and create care packs for their own communities; the resulting stories could be shared on Instagram, Facebook, or Pinterest with the hashtag #IvoryKindness.

Woman and Child

  • P&G’s Skinclusive Summer Line by Venus celebrated the many skins we’re in by partnering with the popular Animal Crossing video game series. During a summer when going to the beach wasn’t necessarily a slam dunk due to COVID-19, Animal Crossing became a way to hit the beach virtually. And the game, which is especially popular among women aged 19-24, took self-expression to a new level: Gillette Venus partnered with digital designer Nicole Cuddihy to co-create new “skin-clusive” avatar designs. The game, which originally offered just a few representative skin types for its avatars, now gives players a choice of 250+ designs encompassing 19 different skin types and eight in-game skin tones. Notably, common skin features such as acne, cellulite, vitiligo, and tattoos are represented. Cuddihy notes, “While momentum for diversity in design is building, there are many areas where progress feels slow. The fact that I could add scars and wrinkles to warriors or outlaws, but not characters in less combat-driven games felt discouraging. With these designs, I hope that all women in Animal Crossing can find comfort and representation in this carefully developed collection. I drew inspiration from those in my own life to ensure the designs I was creating accurately represented their skin stories in a way that feels real, celebratory and beautiful.”

Animal Crossing

P&G Is Preparing for the Future

Per Ad Age, P&G does not seem inclined to tighten the purse strings when it comes to marketing: marketing spending for P&G grew at least $100 million last quarter. As Vice Chairman and Chief Financial Officer Jon Moeller said, “We view this as a time to spend forward in terms of our advertising levels, not to spend back. First, there’s never been more media consumed than there is currently, as we all try to entertain ourselves and our families and survive. And two there’s a heightened need to spend on hygiene and health.”

The message is clear: P&G isn’t afraid to invest in advertising. And as we recently blogged, it’s important that all businesses keep their eyes on the ball by maintaining brand awareness with advertising: now, and going forward.

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Why Businesses Need to Step up Their Digital Advertising in 2021

Why Businesses Need to Step up Their Digital Advertising in 2021

Advertising

When COVID-19 first took hold in 2020 and the world entered a time of seismic change and uncertainty, we urged businesses to stay in the ring with a strong digital presence. We wrote, “You don’t want to be caught flat-footed when consumers shift their behaviors again as the current disruption subsides. And subside it will; not knowing when is different from not knowing if.”

As we look to the new year ahead, this truth resonates more strongly than ever. Here’s what you should know about why digital advertising remains important, how digital presence relates to consumer—not to mention competitor—behavior, and what you can do going forward:

Consumer Behavior Has Shifted Online — Have You?

IBM’s U.S. Retail Index indicates that the pandemic has deeply informed the way people shop: the shift from visiting brick-and-mortar stores to shopping online has in fact been accelerated by approximately five years. The types of goods consumers deem essential has come into sharper focus, too. Clothing shopping, for example, has dipped in an era when more people are attending school and working their jobs online. By contrast, sales in categories such as groceries, alcohol, and home improvement materials have all accelerated.

The question to ask yourself: when people go online to shop, will your brand be present with targeted online advertising, such as paid search, that is relevant to what consumers are looking to buy?

Your Competitors Are Connecting with Consumers Online — Are You?

Ad revenues for the Big Three—Amazon, Facebook, and Google—can also shed some light on what a successful path forward can look like for brands. As reported in The Wall Street Journal, the Big Three are enjoying a surge of online revenue: Amazon and Google have reported strong quarterly sales, and Facebook has also enjoyed record revenue. All three had a great third quarter, evidence that businesses continue to connect with people, online, on multiple levels, from retail to social media to digital advertising. Even the StopHateFor Profit ad boycott did not seem to take a lasting bite out of Facebook’s advertising revenue, which was up 22 percent in the third quarter as compared to a year ago. (It’s worth noting that changes in consumer habits have manifested themselves not just in terms of venue—e.g., the move online—but timing. As Amazon Chief Executive Jeff Bezos notes, “We’re seeing more customers than ever shopping early for their holiday gifts.”)

Social media ad spend overall is also on the rise. In the third quarter, global social media ad spend increased 56.4 percent. According to The Drum, that’s almost double the average spend recorded during the COVID-19-related spending nadir of late March.

In short, brands that understand where, and when, to connect with consumers will benefit. If you are ignoring trends in online advertising, you are probably falling behind competitors who are speaking to these tendencies. Are you taking the prevailing trends to heart?

What Businesses Should Do

To stay competitive, we recommend that you:

  • Keep focused on digital. That’s where the action is, according to the data.
  • Invest in creative advertising. As more people go online and interact with brands, it’s going to be harder to stand apart from the pack. As we’ve blogged, it’s critical to invest in strong creative—and creative that is consistent across all your touch points.
  • Keep growing as digital tools evolve. An understanding of—and investment in—new technology helps brands communicate that what they have to offer is cutting edge. And that new technology is out there for the taking. For example, Consider Google’s new visual search tools:
    • Google Lens allows shoppers to tap and hold an image in the Google app or Android Chrome browser in order to find it in an online store.
    • AR Autos will soon allow shoppers to look for a vehicle in Google Search, then see it rendered in 3D or augmented reality. The result? A more immersive look at key features before consumers even arrive at a dealer lot. This advance “peek” is particularly beneficial at a time when many shoppers are trying to limit in-person contact during the pandemic.

Google’s offerings are just a taste of the new opportunities out there. The headline is this: staying on top of new technology can help position you for success.

Contact True Interactive

The changes brought by 2020 won’t go away with the flip of a calendar page. Rather, they have invited brands to adapt. Curious as to how digital can elevate your brand in 2021? Contact us.

Image source: https://www.pexels.com/photo/apps-blur-button-close-up-267350/

The Google Anti-Trust Lawsuit: Advertiser Q&A

The Google Anti-Trust Lawsuit: Advertiser Q&A

Google

On October 20, the Justice Department filed a long-anticipated anti-trust lawsuit against Google. The lawsuit alleges that Google is “unlawfully maintaining monopolies in the markets for general search services, search advertising, and general search text advertising in the United States.”

In other words, Google wields an unfair competitive advantage.

Google, of course, holds a commanding share of the online advertising market, at roughly 29 percent, followed by Facebook and Amazon. Ironically, Google’s share has been dropping, and 2020 has been rough on its ad business. But the lawsuit isn’t about market share; it’s about allegedly unfair business practices. Read on for answers to questions you might have about the matter.

What exactly is the lawsuit accusing Google of?

According to the Justice Department, Google illegally protects a monopoly in its core search business. That monopoly is harmful to consumers and Google’s competitors. Google pays companies like Apple billions of dollars to make its search engine the default option on their devices – giving Google an unfair advantage. In addition, the Justice Department alleges that Google capitalizes on its dominance by collecting data from users, thus giving its search-based advertising business even more of an unfair advantage.

What is Google’s response?

Google disagrees strongly. In a blog post, Google’s Senior Vice President of Global Affairs Kent Walker wrote, “People use Google because they choose to, not because they’re forced to, or because they can’t find alternatives. This lawsuit would do nothing to help consumers. To the contrary, it would artificially prop up lower-quality search alternatives, raise phone prices, and make it harder for people to get the search services they want to use.”

Walker contends that Google paying businesses like Apple to make its search engine the default search engine is no different from a cereal brand paying a supermarket to stock its products at the end of a row or on a shelf at eye level.

When will the anti-trust case be resolved?

The case could take years to be resolved. Google has deep pockets and will defend itself aggressively. Don’t hold your breath waiting for an outcome anytime soon.

How will the outcome of the presidential election affect the lawsuit?

No matter who wins the presidential election, the lawsuit will move forward. The Justice Department has gone on record saying it is committed to the legal action. Attorney General William P. Barr has aggressive pursued a lawsuit, and the action will simply continue if President Trump wins the election. If Joe Biden wins the election, the consensus legal opinion is that the lawsuit would remain in place.

What happens if Google loses?

Google could get broken up, thus reflecting a growing “break up big tech” sentiment among lawmakers. In the complaint’s “request for relief,” the U.S. is seeking “structural relief as needed to cure any anti-competitive harm.” In other words, Google might be forced to be restructured, or broken up.

What should advertisers who use Google do?

For now, everything is business as usual. The case may take anywhere from six to 18 months to even go to court. We recommend:

  • Do manage your Google advertising account very closely. As we have blogged, Google has been known to introduce features and policy changes that could increase your advertising costs.
  • If you advertise with Amazon Advertising and Facebook, keep a close eye on current events. In recent years, lawmakers have been critical of the Amazon, Facebook, and Google because of their growing dominance. The Google lawsuit may not be the last against them.

Contact True Interactive

To succeed with all firms of online advertising, contact True Interactive. Read about some of our client work here.

Advertiser Q&A: Microsoft Digital Marketing Center

Advertiser Q&A: Microsoft Digital Marketing Center

Advertising Microsoft

Microsoft has been in the news lately. The tech company has expanded its Microsoft Digital Marketing Center, which provides small-to-medium-sized businesses (SMBs) with a central site on which they can manage, online, both advertising campaigns and organic content. Read on to learn more about the Microsoft Digital Marketing Center and what it might offer your brand.

What is the Microsoft Digital Marketing Center?

The Microsoft Digital Marketing Center is a product from the company’s experimental project lab, Microsoft Garage. When it came onto the scene in October 2019, it empowered SMBs to use one interface to manage digital campaigns across multiple networks, from Microsoft to Google and Facebook, Instagram, and Twitter. In late June 2020, Microsoft announced a major expansion of the product, with additional features such as:

  • Social management inbox, which serves as a central hub for managing likes, direct messages, and replies on platforms such as Facebook, Instagram, and Twitter.
  • Image ad suggestion, which allows brands to easily create their own effective image ads by choosing from suggested ads.
  • Improved tools for ads, such as a field for an extra headline. The benefit? Advertisers can include more information in their ads and subsequently enhance location targeting.
  • The ability to appeal disapproved ads from Bing and Facebook.
  • A new home page experience that combines social and ad metrics into one user-friendly dashboard view.
  • Twitter support, which is now enabled.

Who is the target audience?

SMBs are the target market. SMBs have captured even more attention during the COVID-19 pandemic. As McKinsey points out, SMBs face an even tougher road to economic recovery. They need all the help they can get.

Who are Microsoft Digital Marketing Center’s competitors?

Microsoft Digital Marketing Center is competing with platforms such as:

  • HubSpot, which is already positioned as a one-stop shop for SMBs. Though Microsoft Digital Marketing Center doesn’t have all the CRM features of a HubSpot, it brings its own advantages to the table. (It’s currently free, for one thing.)
  • Google, to some degree. As Search Engine Land explains, “Similar to Google Smart campaigns, which aim to simplify campaign set up and management for SMBs, Digital Marketing Center uses Microsoft AI to power ad keyword and audience targeting and bidding.”

But Digital Marketing Center gives customers more autonomy. Advertisers can build their own ads. They can also use automated ad copy or modify auto-suggestions.

Why did Microsoft launch this product?

Microsoft probably launched Digital Marketing Center to gain a toehold with the market of small-to-medium-sized businesses, which have more aggressively embraced digital advertising to acquire customers amid the spread of COVID-19. And as noted above, they are not alone in their efforts to win the hearts of this group.

What should I do next?

If you are interested in trialing the Digital Marketing Center, start here. The beta is open to U.S. businesses only at this point.

Is there a “gotcha”?

As with many free products, be aware that you get what you pay for. Digital Marketing Center is totally self-service: you’ll be on your own in managing this tool. In short, it invites self-sufficiency! Also, just because it’s free now doesn’t mean the features will remain free.

Contact True Interactive

Do you want to learn more about the Digital Marketing Center and what it might offer your business? Contact us. We can help.

Photo by bruce mars on Unsplash

It’s Amazon Advertising’s Year — So Far

It’s Amazon Advertising’s Year — So Far

Amazon Facebook Google

Good news for Amazon. Bad news for Google. According to a new report from eMarketer, Amazon’s share of online advertising continues an upward trend. Google, by contrast, continues to lose marketshare. Read on to learn more.

The What

Amazon’s share of online advertising, which has been rising every year, will reach 9.5 percent in 2020, eMarketer says. Google’s share will drop to 29.4 percent, as Google reports its first-ever decline in advertising revenue since eMarketer began tracking advertising revenue in 2008. Meanwhile, Facebook’s share of online advertising is predicted to rise to 23.4 percent (note, however, that eMarketer published its analysis before an advertising boycott of Facebook took hold—those numbers will likely be re-evaluated).

The Why

Why is Amazon Advertising increasing its share, while Google sees its marketshare drop?

  • Amazon’s advertising unit, known as Amazon Advertising, is probably benefitting from people shifting their purchasing online during the COVID-19 lockdown of 2020. As we have blogged, Amazon without question became an especially attractive place to make purchases as shelter-in-place mandates took hold. And Amazon was prepared to help advertisers build their visibility during this surge, with a tool kit including products such as Sponsored Ads and Display Ads.
  • Meanwhile, eMarketer principal analyst at Insider Intelligence, Nicole Perrin, explains that “Google’s net US ad revenues will decline this year primarily because of a sharp pullback in travel advertiser spending, which in the past has been heavily concentrated on Google’s search ad products. Travel has been the hardest-hit industry during the pandemic, with the most extreme spending declines of any industry.”

What the News Means

The news creates some nice press for Amazon Advertising, but as we have blogged, Google’s ad business remains healthy and solid. And as eMarketer points out, Google is being hit by the economic downturn in travel. There is nothing inherently wrong with Google’s ad products, however.

In fact, Google continues to make its ad products better. We have blogged about some of its innovations lately:

Facebook likely has more to worry about than Google. An advertising boycott is gaining traction with big brands such as Unilever and Starbucks pulling their ad business because they believe Facebook is not doing enough to police hate speech, among other grievances. As reported by cnbc.com, the big names already responding to the #StopHateForProfit campaign have the potential to influence more companies to join the boycott.

Our Recommendations

We suggest that regardless of your platform of choice, businesses continue advertising online. Despite the turbulence among the big online ad players, we know that businesses that continue to have an online ad presence are best positioned for success.

Contact Us

Do you need help sorting your digital ad presence? Contact True Interactive. We can help.

Google’s Shopping Campaigns with Partners: How It Works

Google’s Shopping Campaigns with Partners: How It Works

Google

Google has a track record of recognizing needs, and creating products to solve those needs. In the book How Google Works, authors Eric Schmidt and Jonathan Rosenberg describe a strong culture in which problem solving is encouraged—and facilitated. How Google Works came out in 2014. Six years later, Google continues to prove that problem-solving and innovation are core strengths: one need look no further than a product like Shopping campaigns with partners. Still in beta mode, Shopping campaigns with partners has been created by the tech giant to make it easier for nonretailers such as manufacturers to sell their own products online. How? By giving those brands a way to run advertising that links directly to any commerce site. Read on to learn more.

What Is Shopping Campaigns with Partners?

Shopping campaigns with partners essentially puts products in places where shoppers will see them. Increasingly, that means a digital presence: according to Google, 56 percent of consumer time spent with media is on digital. Shopping campaigns with partners capitalizes on the importance of digital, facilitating a collaboration between brands and retailers, and then connecting the two by directing consumers from ads that appear throughout Google ad touchpoints like Google Search or YouTube.

Why Shopping Campaigns with Partners Matters

It’s easier and more efficient for businesses to advertise when they don’t have to manage a commerce site of their own, and Shopping campaigns with partners takes that burden off of manufacturers. But the partnership the product forges clearly benefits both parties: as Google notes, “brand manufacturers . . . promote their products while increasing traffic to retailers of their choice.” The mutual benefits don’t end there. As part of the partnership, manufacturers partially fund the retailer’s advertising cost for the manufacturer’s products. In return, retailers provide attribution reporting for the products highlighted in the campaign.

Who Is Using Shopping Campaigns with Partners?

Shopping campaigns with partners will eventually be launching in every country where Google Shopping products are offered. Some manufacturers, such as the Estée Lauder Companies, have already had an opportunity to test the capabilities of the product during its beta phase. In this instance, Shopping campaigns with partners paired Estée Lauder with a retail partner in the United States; the campaign was specifically meant to position and promote Estée Lauder designer fragrances, and maximize holiday demand. The strategy paid off: thanks to Shopping campaigns with partners, clickshare of the targeted fragrances increased 70 percent.

True Interactive is ahead of the curve. We’re working with businesses to use the product to support their online commerce needs. We’ll report on results later!

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Eager to learn more about how Shopping campaigns with partners might benefit your brand? Contact us.

How to Adapt B2B Marketing during Turbulent Times

How to Adapt B2B Marketing during Turbulent Times

Marketing

Businesses that market to other business can and should keep engaging with their clients and prospects during the disruption we’re all enduring right now. Let’s take a look at why this is so and how a B2B brand should stay visible.

The B2B Customer Journey Is More Complex

The B2B customer journey is more complex, and the sales cycle is lengthier. The decision-making process for purchasing a product or service for a business requires more research and approvals. So in a B2B setting, it’s even more important for a brand to maintain frequent outreach to stay on a prospect’s radar screen. During a disruption of operations, your prospects may postpone their decisions, thus making the sales cycle even longer. But if you fall off their radar screens, it’s going to be harder for you to re-connect with them when they are ready to re-engage.

What You Should Do

So what should you do to remain engaged? Here are a few tips:

1 Examine Your Analytics

Your B2B customer is just like a B2C audience: likely stuck at home during a period of social distancing (unless their profession dictates otherwise) doing their jobs exclusively online. We’re seeing dramatic shifts in both desktop and mobile search behavior across the board while people practice social distancing. Now, dig deeper into your own audience behavior. For instance:

  • What changes do you see in click-through rates for different paid media campaigns you’ve been running and at what time of day? They’ve probably changed depending on the type of product you offer.
  • What changes do you see in the content your prospects are searching for?
  • Where is your audience spending your time? It’s quite possible they are engaging more on social than they ever have while they combine professional and personal priorities while they work at home. A social platform such as Facebook, which might not have been your natural choice to advertise, might make more sense right now.
  • In addition, if you are a global B2B brand, your mileage may vary depending on where you do business, as different countries are being affected by the COVID-19 pandemic with varying degrees of severity and with different recovery time frames.

2 Be Ready to Adapt Your Tactics

Depending on what your data tells you, be ready to adapt the nature of your campaigns, for instance:

  • Adapt your keyword strategy to be more in tune with the topics they are looking for right now. Carefully manage your keyword exclusions to avoid having your name appear next to COVID-19 content.
  • Be prepared to invest more into paid social media if your audience is navigating there. In addition, consider that Facebook’s and LinkedIn’s audience targeting tools make them ideal for experimenting with the type of audience segments you want to reach.

3 Mind Your Tone

B2B audiences are experiencing the same feelings of doubt and uncertainty that B2C audiences are. Re-examine the tone of your content. Be prepared to tone down overly salesy, chipper content that will come across as tone deaf. Use phrases and images that emphasize that you are here for your customer and seek to partner with them during a difficult time.

4 Invest in Thought Leadership

Sharing thought leadership (such as blog posts and white papers) is a great way to augment your digital advertising with top-of-the-funnel awareness. Why? Because during a slowdown in operations, it is not uncommon for B2B customers to brush up on professional knowledge, and they’re also going to be more receptive to practical ideas for managing their businesses during trying times.

Contact True Interactive

True Interactive knows how to create and execute digital marketing for both business-to-consumer and business-to-business clients. We’re here to help you. Contact us to learn more.

Image by Gerd Altmann from Pixabay