The digital advertising industry is being disrupted as more independent marketing analytics, verification and attribution technologies go to market. This disruption is being accelerated by top advertisers like Procter & Gamble who contribute to the $200B of annual advertising spend in the United States. Here are some excerpts from Procter & Gamble’s Chief Brand Officer keynote at the US IAB Annual Leadership Meeting last week:
P&G to review all agency contracts in 2017 in four-step plan to bring transparency to media supply chain.
“Marc Pritchard, Procter & Gamble’s influential global chief brand officer, has urged all parts of the marketing industry to come together to tackle media transparency in a keynote address to the US IAB Annual Leadership meeting in Florida yesterday (29 January).”
“We’re not growing enough. Despite spending an astounding $200 billion in advertising in the US, the growth rate of our collective industries is pretty anemic. Some might say we’re squandering this wonderful gift of technology. Perhaps we could chalk it up to growing pains since digital advertising is relatively new. We’ve been giving a pass to the new media in the spirit of learning – P&G included. But together we’re all spending $72 billion in digital advertising – surpassing TV. The days of giving digital a pass are over – it’s time to grow up. It’s time for action.
“We need better advertising to drive growth enabled by media transparency to drive a clean and productive media supply chain. Better advertising and media transparency are closely related. ”
“The days of giving digital a pass are over. In fact, according to the Wold Federation of Advertisers, some 90% of marketers are looking to review agency contracts in the hope it will deliver greater transparency.”
“We realize there is no sustainable advantage in a complicated, non-transparent, inefficient media supply chain. Getting to a clean, productive media supply chain is the level playing field” we all want and need.”
“We make decisions involving billions of dollars on where to invest our media money. These are big bets so we need objective, validated measurement to be sure that we’re getting the viewability, audience, reach and frequency we pay for. Regardless of how much we trust and respect the people from whom we buy media, we need an objective, impartial judge to perform the measurement.”
“So at P&G, we’re expecting every media supplier – including publishers and measurement vendors – to adopt accredited third-party verification during 2017. It’s taking some work, including technology investments, especially since there are some very legitimate data privacy issues which need to be addressed.”
“So we are now pouring over every agency contract for full transparency by the end of 2017”
“This is a matter of collective will. If we can find a way to drive cars autonomously, we can find a way to track media.”
“I had a moment of clarity,” Mr. Pritchard continued,” and replied, ‘Well, hundreds of millions of dollars may not seem like a lot to you, but it’s a lot to us. We’ve been leaning forward for the past several years. And it’s not going to stop unless you get validated, accredited third-party verification.'”