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February 18, 2012

Procter & Gamble sees 9% sales growth from Facebook

Procter & Gamble recently cited its ability to use Facebook's branded Pages for free as one reason it may have cut its $10 billion ad budget

P&G is the world's biggest advertiser—its budget is $10 billion—and Facebook is eager to prove its ad products are effective. It gave this anecdote about a 9 percent increase in Secret deodorant sales following a P&G Facebook campaign:
Procter & Gamble chose to advertise on Facebook to generate awareness for Secret deodorant’s “Mean Stinks” program and selected a female audience likely to be receptive to the campaign. The ad featured a confessional-style video of a girl admitting that she had bullied others, realizing the damage she had caused, and apologizing. In the 26 weeks after the Mean Stinks campaign launched, Secret experienced a 9% increase in U.S. sales and an increase in engagement with its Facebook Page
Consumer products manufacturer Procter & Gamble Co. is said to be ending its 77-year run as a prominent sponsor and producer of soap operas — a genre the company helped create — in favor of producing more campaigns using social media.
The switch from soap operas to social media is one motivated by its success with previous social media campaigns — such as its Old Spice Guy YouTube promotion — and a desire to capitalize on the more readily available opportunities of reaching women through digital media.
Digital media has “become very integrated with how we operate, it’s become part of the way we do marketing,” marketing chief Marc Pritchard told the Associated Press. “It’s kind of the oldest form of marketing — word of mouth — with the newest form of technology.”
The company is an important advertiser that spends nearly $9 billion per year to advertise its products. The company is finding social media sites such as Twitter, Facebook and YouTube to be more effective channels for reaching women and has spent much of 2011 experimenting with campaigns in these arenas.