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P&G cuts back on Facebook targeted ads

FebrezeOn of the world’s largest advertisers is cutting back on its use of targeted advertising on Facebook, and opting for reach as the preferred way to drive sales online.

The decision comes after P&G found that sales for its Febreze brand flattened after using targeted ads but recovered after broadening its focus, the Wall Street Journal is reporting.

In an interview with the Journal, P&G’s CMO Marc Pritchard said that the FMCG giant had gone too far with its Facebook targeting strategy, comments that may influence other large-scale brands on how they hone in on consumers through digital channels.

“We targeted too much, and we went too narrow, and now we’re looking at: What is the best way to get the most reach but also the right precision?” he said.

P&G, which in Asia operates brands such as Pringles, Pantene, Head & Shoulders, Olay, SK-II, Safeguard and Ambi-Pur, does not plan to cut spend on Facebook, just spend less on highly targeted ads.

The company spent $7.2 billion on advertising globally in the year to June 2016, up 1% on the previous year.

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