Originally posted by: Posted by Julie Roehm
Read the article below and write your views in details as per discussion held in class.
Read the article below and write your views in details as per discussion held in class.
For those of you under 30 years old, this headline might not make sense. To catch you up, I have copied the Wikipedia post on "Video Killed the Radio Star" - the song which is the inspiration for this blog. ""Video Killed the Radio Star" is a song by the British synthpop/New Wave group The Buggles, released as their debut single on 7 September 1979, on Island Records from their debut album The Age of Plastic.[1] It celebrates the golden days of radio, describing a singer whose career is cut short bytelevision. The song topped the music chart in several countries and has been covered by many recording artists. It was the first music video shown on MTV in the U.S. at 12:01am on August 1, 1981. The song was number 40 on VH1's 100 Greatest One-Hit Wonders of the 80's.[2]" It turns out that it didn't quite kill radio but it sure did change the landscape of music consumption. And this week, P&G announced that it would cut 1,600 jobs as they plan to "Bank on Digital for Long-Term Savings". So, will digital kill video/TV, if not everywhere then at P&G?
P&G's CEO, Bob McDonald has been under a great deal of pressure from analysts to justify their ad spend which has increased P&G's by a staggering 24 percent over the two years through October 2011, even though sales rose only 6 percent in the same period. BusinessInsider said, "P&G's staggering ad budget has become a bit of an issue among analysts. On the call, McDonald and his crew were asked about ad costs three different times. McDonald eventually said:
As we've said historically, the 9% to 11% range [for advertising as a percentage of sales] has been what we have spent. Actually, I believe that over time, we will see the increase in the cost of advertising moderate. There are just so many different media available today and we're quickly moving more and more of our businesses into digital. And in that space, there are lots of different avenues available.
In the digital space, with things like Facebook and Google and others, we find that the return oninvestment of the advertising, when properly designed, when the big idea is there, can be much more efficient. One example is our Old Spice campaign, where we had 1.8 billion free impressions and there are many other examples I can cite from all over the world. So while there may be pressure on advertising, particularly in the United States, for example, during the year of a presidential election, there are mitigating factors like the plethora of media available."
No comments:
Post a Comment