he battle royal between marketing giant Procter & Gamble and activist investor Nelson Peltz is a case study on the effective use of digital marketing currently playing out before our eyes. Mr. Peltz says “P&G (Goliath) suffers from market share erosion and low organic sales growth due to smaller companies (David’s, just like you and me) using digital marketing more effectively”. In the middle of the proxy battle this summer P&G dropped a bombshell on the digital ad world by eliminating $140 Million of what it called ineffective digital ads in the 4th quarter of 2017 alone. Many observers implied if P&G doesn’t think digital ads work, digital ads must not work, right?
Just like you and I, Mr. Peltz’s objective is to create sustainable long-term value at P&G. Not by cutting costs in areas like marketing or research and development but to use those resources in new and effective ways by embracing the digital disruption in order to increase business and add value. Mr. Peltz eloquently proves his point by demonstrating how smaller upstarts like Harry’s Razors and Honest Company are doing digital right and are currently stealing market share away from the P&G.
This article will outline how Mr. Peltz is advocating P&G can do digital right to grow their business units using the same low-cost digital channels available to everyone with a laptop and internet connection.