Not Gambling On Media
Procter & Gamble may be cooling its jets on paid media.
Over the past few years, P&G has been testing its reach and frequency in an attempt to understand where it could spend less while reaching more people – and it learned a few things.
“We’re now more clear on where that playbook goes,” CFO Andre Schulten told investors during the company’s most recent earnings call on Wednesday.
The brand is also focusing on product R&D as a big business driver.
For example, the Swiffer PowerMop, launched in 2023, is now the “largest innovation in Swiffer’s history,” according to CEO Jon Moeller, contributing to 40% growth across the brand’s overall portfolio. Charmin toilet paper with scalloped edges – “the biggest innovation in toilet paper in 100 years,” in case you thought scalloped TP was trivial – likewise elevated the whole Charmin brand, he said.
Last year also saw the launch of Old Spice deodorant you spray on your crotch, as well as the debut of the Oral-B iO 10 Series electric toothbrush that provides feedback on your brushing habits. And then there’s Tide evo, which is laundry detergent available in concentrated woven fiber tiles.
This stuff just sells itself. Who needs ads?
Saved By The Inauguration
TikTok’s competitors are trying to poach the social video app’s advertisers now that a US ban actually seems realistic.
The ban temporarily went into effect on Saturday before President Trump extended the deadline on Monday for TikTok to divest its US operations by another 75 days. Also as of Monday, Snap and Reddit are dangling discounts to advertisers who spend more money on their platforms, The Information reports.
Snap is offering 20% back in free ad credits to brands that spend more than $100,000 on its platform, according to several media buyers, while Reddit is offering 10% in credits to advertisers that spend more than $150,000.
Snap and Reddit didn’t explicitly say they’re trying to siphon TikTok’s ad spend, but the timing – and the way both platforms tout their overlapping audiences with TikTok – makes the intention pretty clear.
Still, it’s too soon to say whether brands will take Snap and Reddit up on their offers. These spend minimums are too high for many advertisers to benefit, two sources tell The Information.
Plus, TikTok still has another few months to save itself.
Monetizing The New Media
Here’s another sign of mainstream media’s decline: Brands are following audiences and writers to Substack, the Wall Street Journal reports.
Substack doesn’t provide its publishers with ad serving tools, and takes no cut of ad revenue. This hands-off approach to advertising is creating new revenue opportunities for independent publishers – and ad networks.
Typically, Substack authors strike direct sponsored content deals with advertisers. Some authors can bring in $5,000 for a few paragraphs of sponcon, compared to $5 CPMs for programmatic newsletter banner ads.
Casey Lewis, who publishes a Substack newsletter about youth culture called After School, projects that advertising’s share of her annual revenue will grow from 10% in 2023 to 20% this year. She claims she’s having trouble keeping up with invoicing for the influx of direct deals.
That’s where newsletter ad networks come in. One such network, Beehiiv, takes the reins on ad sales – in exchange for up to 20% of revenue.
But rather than turn to ad networks, some entrepreneurial Substackers are creating and selling their own standard ad units. Alex Kantrowitz, publisher of the Substack newsletter Big Technology, sells proprietary ad slots in addition to sponsorships through agency partnerships.
It seems to be working out. Kantrowitz’s Substack boasts 150,000 subscribers, and advertising now accounts for more than half of his revenue.
But Wait! There’s More
Top YouTuber MrBeast is bidding to buy TikTok with backing from investors. [CNN]
Will Omnicom’s John Wren and IPG’s Philippe Krakowsky mesh or clash as the agency holdcos consolidate? [Ad Age]
Hundreds of subreddits are considering a ban on all links to X.com in response to Elon Musk’s Nazi salutes at the Trump inauguration. [404 Media]
The VP of content for the New England Patriots says that the NFL – which has content partnerships with X and TikTok – told the team to shut down its Bluesky account. [Awful Announcing]
AI startup Anthropic secures an additional $1 billion in funding from Google. [TechCrunch]
You’re Hired
Comscore appoints Frank Friedman as chief data and analytics officer and head of measurement. [release]
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