P&G to Scale Back Targeted Facebook Ads

P&G to Scale Back Targeted Facebook Ads

           Procter & Gamble Co., will remove ads from Facebook that target specific consumers. They concluded that specific targeting has limited effectiveness on consumers. P&G emphasized in specific groups , which do not reached all the people they wanted. Marc Pritchard, P&G’s chief marketing officer, said that the company took this strategy too far: “we targeted too much, and we went too narrow.” Now they will look for the best way to get the most reach and with right precision. P&G would not cut on Facebook spending, but will employ targeted ads where it makes sense.

            It is very interesting to analyze what is happening in this case. P&G is investing in Facebook's marketing but it is not working because their targeting is too narrow. Sales were not as good as they thought because their target market was very small. This means that only an specific group is being advertised about the product. I would never think that spending on Facebook ads would generate few consumers, since social media is the most powerful advertising tool now a days.

            However, this is not a fault from Facebook Co.. Procter & Gamble Marketing department did a wrong analysis when promoting their product. It is related to our class, since P&G is changing its marketing model. They will start to switch their segmentation and targeting to acquire more customers. Their price, product and place is well established, but nevertheless their promotion is harming their wallet. By making the market research, they defined the problem, analyzed the situation, gathered specific data, interpreted the data, and finally solved the problem.

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