Well, P&G has done it — exactly as Chief Brand Officer Mark Pritchard promised a year ago it would. The consumer giant cut the number of agencies it works with from 6000 to 2500 and next year will cut that number in half again. According to Chairman and Chief Executive David Taylor, the company has found and eliminated as much as 20% media waste and still increased its reach 10%. Somebody woke up the hibernating bear and it was hungry for change.
For years some of us in the industry have been simultaneously laughing and crying about waste and fraud in digital advertising. No one seemed to care. But all of a sudden the KPIs for everyone from media buyers to middlemen seem to have changed, and everyone’s serious about cleaning up the waste.
P&G is just one example of changes in the media industry that will come about in the coming years. The hammer has now come down on fraud, wielded by the only people who ever could swing it with enough power, the brands that pay the bills.
Now what’s going to happen next? Taylor already told a Consumer Industry Analyst Group that P&G is taking more of its media buying inside, and it will do that “through private marketplace deals with media companies, and precision media buying fueled by data and digital technology.” So much for waste.
What does this mean for the online publishing ecosystem?
For the ad agencies and trading desks it probably means a round of layoffs and belt tightening as many of them lose a big piece of business. For brands, it means some broad shoulders to stand on as they demand greater transparency and more attention to brand safety. In other related news, Unilever’s CMO, Keith Weed, threatened at the IAB Annual Leadership Summit that it would pull its advertising from Facebook and Google if the platforms don’t curb hate speech and controversy.
For ZEDO it means increased focus on our core mission, which has always been to help our publisher partners to monetize their inventory more completely and at hight rates. For the past three or four years, we have been operating as a private platform that joins publishers who have premium content with big brands in a secure buying environment. We have made certain that any transaction within our control is transparent, viewable, and brand safe.
It seems like the industry is coming our way.