Facebook Flops After World’s Largest Advertiser Questions Ad Effectiveness

Facebook tumbled in midday trading after WSJ reported Procter & Gamble – the biggest advertising spender in the world – will move away from advertising on Facebook that targets specific consumers after deciding the practice has limited effectiveness.

Facebook has spent years developing its ability to zero in on consumers based on demographics, shopping habits and life milestones. P&G, the maker of Tide and Pampers, initially jumped at the opportunity to market directly to subsets of shoppers, from expectant mothers to first-time homeowners.

 

Marc Pritchard, P&G’s chief marketing officer, said the company has realized it took the strategy too far. “We targeted too much and we went too narrow,” he said in an interview, “and now we’re looking at: What is the best way to get the most reach but also the right precision?”

The first two tumbles weighed stocks down but once the machines got hold of the headline and crashed Facebook, the broad indices shrugged…

via http://ift.tt/2aIerSH Tyler Durden

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