Mar 2, 2018 - Economy & Business

Big marketers reassess their digital ad spending

Proctor & Gamble slashed its budget by $200 million. Photo: Raymond Boyd / Getty Images

"Turmoil on Madison Avenue as Marketers Push for Change ... P&G slashes digital ad spending, calls for disrupting 'archaic Mad Men model'" from the Wall Street Journal's front page.

Why it matters: "It represents an important shift after years of marketers raising digital ad spending almost reflexively."

  • What's new: "The world’s biggest marketers are taking aggressive steps to change how they buy ads, triggering upheaval across the advertising industry."
  • What happened: "Procter & Gamble Co. ... slashed spending on digital advertising by more than $200 million last year, after a recent push for more transparency had revealed such spending to be largely wasteful."
  • "WPP, the world’s largest ad agency company, ... logged its worst performance since the financial crisis, posting a decline in net sales for the year and projecting no growth in 2018."
  • "Among the reasons: Big clients like P&G and Unilever PLC have been stepping up their campaigns to cut ad agency costs."
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