In a bid to rein in costs and improve efficiencies, Procter & Gamble, the world's biggest advertiser, will redistribute duties for its programmatic digital media buying unit, according to a report in Ad Age, which broke the story on Thursday.
P&G Chief Brand Officer Marc Pritchard has lambasted the digital advertising industry since January about problems in the digital media supply chain, including poor ad quality, the lack of transparency and the burden of having too many ad-tech vendors.
P&G wants to save at least $1 billion annually on media spending and $500 million more from agency and production fees globally over five years, according to the trade magazine. The company has cut ties with AudienceScience, an original ad-tech partner that provided data management (DMP) and demand-side platforms (DSP), and entered into agreements with Neustar and The Trade Desk.
Through a spokewoman, P&G told Ad Age the moves are aimed at tailoring for regional needs around the world.
Neustar is likely to supply the DMP to P&G and The Trade Desk, the DSP, Ad Age reported. The spokeswoman confirmed that P&G’s relationships with its agencies, Omnicom's Hearts & Science and Dentsu Aegis Network's Carat in North America, aren’t affected.
Steve Bagdasarian, general manager of PCH/Media, the ad-tech arm of Publishers Clearing House, told Real-Time Daily via email that P&G's moves highlight its commitment in challenging the digital status quo, as well as the market realities for flexibility at both the DSP and DMP level.
"The change signals to the market that programmatic media and data aren’t winner-take-all arenas. Even in the age of dominant 'everything' platforms, there's still very much a need for strategic point solutions throughout the supply chain," Bagdasarian said.
"It's quickly becoming reality that it isn’t enough just to have a programmatic strategy. You need a DSP strategy, a DMP strategy, etc." He added the change should enable P&G, as well as other brands that follow suit, to call to task each end vendor in the supply chain.