As the world’s largest advertiser, any move by Procter & Gamble (P&G) is closely watched. So much attention has been paid to its recent announcement that it will cut $10 billion from its marketing budget over the next five years. In an interview last week with The Wall Street Journal, P&G’s Global Chief Marketing Officer Marc Pritchard elaborated on the company’s intent to lean more heavily on digital media at the expense of higher-ticket TV advertising as part of its cost-savings strategy. The Wall Street Journal interview is part of a PR push from P&G around its digital ambitions, highlighted in a Signal event in Cincinnati last week that focused on brand building in a digital world. The event brought in digital players and experts from Facebook and Google to Buddy Media and Flipboard as well as Forrester’s own eBusiness experts Sucharita Mulpuru and Andy Hoar. So why is P&G making this digital shift, and what does it mean?
The public event and announcements are, as the event name suggests, a signal — a welcome signal to Wall Street that P&G will be faster and more efficient (the company’s stock rose 3% with the budget-cutting news). It's a return shot across the bow to competitors such as Unilever and L’Oreal, which are both making high-profile advances in their digital ambitions, and a signal to P&G employees around the world that their leaders are serious about digital and that they need to accelerate change in the slow-moving P&G ship.
For the 2010 launch of his autobiography Decoded, hip-hop mogul Jay-Z ran a teaser campaign with Bing that released one page of the book per day on out-of-home signage; people across the US tried to decode the pages from buildings, pools, and clothing racks. Jay-Z is one of many marketers giving the once-stagnant out-of-home channel an infusion of digital and creative innovation. Place-based networks, digital signage, digital billboards, and hybrid installations offer an array of options for marketing leaders to consider as they try to reach on-the-go consumers. This reinvigorated medium offers marketers greater relevance, engagement, and interaction. It grabs consumers with content at the right time in the right place — when they are about to make a purchase decision — and offers the immediacy of instant gratification or information through smartphone-enabled technology.
To get a picture of this new media landscape and to find out more about how leading marketers have begun to use digital out-of-home, check out my new report, “Digital Remakes Out-Of-Home Advertising."
What do you see in the future for digital out-of-home? Are you ready to get outside?
My Customer Intelligence colleagues and I, like many others, can't help but wonder how Carol Bartz's departure from Yahoo! is going to play out for the digital behemoth. Shar VanBoskirk's post last week summarizes Yahoo!'s current state, and I agree with her assessment that the company's assets are worth far more piecemeal than as a whole. As she points out, Yahoo!'s advertising capabilities are one of its greatest assets.
But from a CI perspective, so is its OpenID-based Yahoo! ID, which enables single sign-on (SSO) functionality for its more than 273mm global email-service users. Now, while a relative minority of those users actually take advantage of Yahoo! ID across the web today, the demand for SSO and federated identity is growing such that Yahoo!'s broad user base and consumer trust is already tremendously valuable.
So, who are the "unusual suspects" that have the most interesting opportunity for acquiring Yahoo!'s personal services/communications/identity management business?
Wal-Mart. Yep, you read it right. Wal-Mart, despite being the world's largest retailer, continues to lose digital market share to Amazon, and it clearly wants to change that. Last month, it restructured its online organization to better align with its brick-and-mortar presence and just this week announced plans to to buy "key assets" of mobile ad targeter OneRiot. Yahoo! ID would give Wal-Mart the single sign-on capability that it doesn't have today, with some nice benefits over Amazon's closed-ecosystem identity service. And Yahoo!'s user base is, demographically speaking, a slightly better fit for Wal-Mart than other major big-box retailers.
It’s a couple of days after Google announced its intentions to jump headfirst into the hardware business. By now everyone — including my colleagues Charles Golvin and John McCarthy — have expressed their thoughts about what this means for Apple, Microsoft, RIM, and all of the Android-based smartphone manufacturers. This is not another one of those blog posts.
What I really want to highlight is something more profound, and more relevant to all of you out there who might classify your day job as “product strategy.” To you, the Google/Moto deal is just one signal — however faint — coming through the static noise of today’s M&As, IPOs, and new product launches. But if you tune in and listen carefully, two things become crystal clear:
The lines between entire industries are blurring. Google — and some of the other firms I mentioned above — are just high profile examples of companies that are diversifying their product portfolio, and the very industries in which they play. There are several instances of this over the past "digital decade." What's different now is the increased frequency of the occurrences.