Commexis Cast Daily – Mar. 02, 2018: Digital Transformation and P&G Cuts Their Digital Spend

Today’s Commexis Cast discusses Grant Thorton LLP’s latest survey on digital transformation, and the reasoning P&G’s cuts to their digital ad spend.

Digital transformation is the topic of the 2018 and a new survey by Grant Thorton LLP in conjunction with CFO research found that 69% of CFO’s and senior financial executives plan to increase their spending on digital transformation this year, with four out of 10 increasing by more than 10%.

One particular thing of note in the study is the lack of ROI analytics. “Still, the more than 300 CFOs and financial leaders who participated in the survey fret about measuring success: Just over 40 percent reveal that they do not have good financial metrics that show the ROI in IT efforts. And only 12 percent agree that they have an effective system of measuring financial performance associated with technology implementations.” Phillip says that while the metrics and analytics aren’t completely there, yet, it’s clear that taking these first steps into digital transformation is pivotal for brands.

Second, P&G intends to cut their spending with big digital players by 20 to 50 percent, according to a report by AdAge’s Jack Neff. The Cast discusses on quote in particular from P&G Chief Brand Officer Marc Pritchard: “The learning lab is also helping us stop one of the most persistent mass marketing problems — annoying frequency. We asked ourselves: ‘How often do our ads really need to be seen to be understood?’ Using proprietary cognitive and behavioral science, we confirmed that it’s not rocket science to remember that ‘Bounty is the Quicker Picker Upper’ or ‘If it’s gotta be clean it’s gotta be Tide.’ When we combined cognitive science with data and analytics, we found that the average ad frequency was three times. That was a head fake, because the averages hid the fact that too many people were being reached more than 10 times and some as many as 20 times.”

Len and Phillip discuss how big name brands, such as Bounty and Tide, have the support of 40+ years of marketing helping people familiarize themselves with a brand. Therefore, the 3 ads number makes sense. For a smaller brand, or a brand just starting out, that magic 3 might not be so keen.

Today’s cast: Len Ward (Commexis President), Phillip Brooks (Commexis Lead Strategist), and Matthew McGrorty (Commexis Videographer/Podcaster).

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