Lessons to Learn from Proctor & Gamble

Lessons to Learn from Proctor & Gamble

Today’s article  is going to break my usual self-imposed 10 minute rule. Nearly every article on my website and podcast episodes are under 10 minutes in length.  This one is longer because I want you to get all the information and understand why it’s valid.  We’ll start with the last part first.

In September 2023, I attended the Radio Sales Master Summit in Cincinnati, Ohio and got to attend multiple seminars and panel discussions and hang out with some of the guest speakers that weekend about a year ago.

One of the speakers was former Senior Media Analyst for Procter & Gamble John Fix who shared how he discovered the mistake that Proctor & Gamble made that was costing them tons of money and market share and then he fixed the problem.

John retired from P & G and created his own consultancy and has shared some of his tips and wisdom including something this summer that I’ll share in a moment.

John’s background is not advertising.  He’s an engineer and his role at Proctor and Gamble was an analyst.  He looked at numbers and data and using the science of engineering created hypothesizes and experiments to test how the validity of what he was doing.

From this article from RBR.com:

P&G noticed the trend of shrinking TV audiences in 2017. They started pumping more money into radio at the urging of media analyst John Fix. TV CPMs remain expensive due to demand – add an audience in decline and that higher cost is also considerably less effective.

Consumers have more choices on what to watch and how to watch it than ever before.  The mass media of network TV from decades ago has been shrinking to the point of actually having too many choices for companies like P&G.  There’s a term called CPM which refers to Cost Per Thousand that simply refers to the cost to reach a thousand people in reference to the cost of an ad.

Here’s some more facts and figures, originally published in March 2023:

Details of the P&G 2022 radio ad spend come as it was revealed that 18- to 49-year-olds are spending more time listening to the radio than watching linear TV for the first time ever.

It’s a cost-effective method for the company as the CPM to reach that same audience on TV is as high as $35-$65. YouTube CPMs range from $20-$25 and linear TV is in the $10-$15 range. Radio can be bought at a cost-per-thousand of $5-$6.

Those CPM figures are based on volume buying which for Proctor and Gamble is substantial. According to my sources, their total ad spend in 2022 was $2.2 Billion and radio recieved $235 million of that spend.

This increased investment in radio has only increased since 2022.  As reported in April 2024:

The consumer-packaged goods giant boosted its ad spend as a share of sales by … more than $360 million, Chief Financial Officer Andre Schulten said in a media briefing. The Cincinnati-based manufacturer is famous in marketing circles for conducting rigorous and sophisticated research and analytics to ensure its marketing dollars deliver maximum return on investment. Said Schulten, “We will not spend if there’s no ROI.”

So what can we learn and apply to our local businesses when it comes to making smart advertising and marketing decisions?  Here’s the latest from John Fix:

A long-held perception is that sight is needed to create product identity. The following is a framework that was used to talk about the role of media in different situations. It ties into how audio can work with a well-thought-out product.

Audio, specifically AM/FM radio, creates reach and brand awareness. This is important for new products as building awareness is key. A product cannot sell if consumers are not aware of it.

Brands are afraid that audio may not create awareness for new products because there is a belief that it is hard to talk about a product that consumers have not seen. The fear is that awareness may not translate to identifying the product at the point of sale (on the shelf) to make a purchase.

Incorporating audio in a media plan, especially a new product with a budget that does not include traditional mass reach media like linear TV, can be game changing. The next points elaborate on how awareness can work.

New product introduction and the role of audio

  • BRANDING: Say the brand early, often, and spell out the name. Audio best practices highly recommend strong branding and using the name of the band. The brand name would ideally be spelled as it sounds so that saying the brand easily translates to recognition of the brand as it would appear on the label. If the brand name uses non-traditional language or an acronym, spelling the brand would not be a bad idea. Think of all of the new brands with names like “Sploosh” or with names of foreign origin. Lyft, Tumblr, Krispy Kreme, etc. are brand names that may require an audio prompt like “Krispy Kreme, spelled with a ‘K.’” The phrase “spell it out” may be taken literally.
  •  
  • BENEFIT: Lead with a recognizable benefit for the consumer. Products exist to serve a purpose. Advertising can be weak when the benefit is an indescribable aesthetic, which is why beauty brands used to stay away from audio. Advertisers believed that beauty relies on sight and motion. Beauty advertisers learned the way to describe the benefit of “silky hair,” “brilliant, white teeth,” and identifiable terms for curly hair. Laundry learned to use adjectives to describe “clean laundry.” Even scented products learned their way into describing scents (nature fresh) with audio. Brands should utilize their consumer research to find the clearest, simple description of the product benefit and use it in the audio. If a brand can articulate a benefit, then audio will work. If there isn’t a strong recognizable benefit to the consumer, then a brand will have to think very hard about the product and the right of the product to succeed. Natural products tend to be safe and environmentally friendly. If that is the point of differentiation in a category, it should be said. “Natural” all but speaks for itself. Elaborate with audio.
  •  
  • PACKAGING: Tell the consumer what to look for on the shelf. Products ideally have a form similar to the category. Mouthwash is typically a clear bottle with a large cap. Laundry and dishwashing detergent used to be a box with powder. Then they became a bottle with liquid and now, a novel container with pods. If the new product is in a form unlike the category or if the product uses assets unlike those familiar to the brand, then the audio should describe what the consumer should look for: “found in the bright yellow bottle,” “the toothpaste not in a tube,” “dishwasher detergent in a pod.” This allows audio to tell the consumer what to look for on the shelf. This would help a consumer to identify the brand and find the product at the point of sale.
  •  
  • DISTRIBUTION/SHELF: Be descriptive on where to find the product in its category. If a product delivers a tangible benefit, then finding the product shouldn’t be hard. Market structure determines that retailers place substitutable products near each other: cleaning products, auto, household goods. New products should be in outlets where the category is sold. A brand, especially a new innovation, should say which product category it is associated with if necessary: “Found where cleaning products are sold.” This is also where the description of the package can help: “Available at grocery stores in the orange bottle.”

Audio can help your brand become “easy to mind, easy to find”

This framework was very helpful to the advertiser of innovative products. The framework tied the brand name, the appearance, and the strengths of the product to the applicability of audio.

More can be said specific to the belief that “sight is necessary to convey a benefit.” Cosmetics and beauty have long held the idea that the aesthetic benefit requires a consumer to see the end result. A good media brief for an image or video ad would describe exactly what would be desired in a visual medium and that language should be compelling in audio.

Audio best practices stress the importance of branding and conveying the benefit of the product. This framework adds the importance of making the brand physically identifiable and shows that it is possible for audio to lead a consumer to the shelf to find the product that will deliver the job to be done.

John Fix can be reached at johnfixltd@gmail.com.

How do you apply this advice to your local company?  Contact me: Scott@ScLoHo.net

Boss or Manager?

Boss or Manager?

From a recent Sound ADvice newsletter my subscribers received this summer:

Are you a “Boss”?

 

As a verb, the Webster’s Dictionary says that to “boss” is, to order about in a domineering way. Poor customer service is often the result of interaction with people working for a boss who is not happy with their situation.

Or are you a “Manager’?

The same dictionary defines “manager” as, to handle or direct with a degree of skill. It even adds in, to treat with care.

The most successful managers today attempt to hire people who have a passion to do their jobs to the best of their ability…these people don’t need a boss. These employees need a manager who will give them access to the tools, training, people, resources, and environment that allows them to perform to the best of their ability.

 

If you’re a manager, here’s a challenge. Instead of giving your people a “to-do list”, try asking them to give you a “to-do list”. What do they need you to do to help them be more productive or deliver better customer service?

 

In our Top Ten Employee Happy-Makers, Happy-Maker #4 is, “360-Degree Feedback”…. asking your employees how YOU are doing.

 

Zig Ziglar said, “You can get whatever you want, as long as you are willing to help others get what they want. It’s also been said that you can be as successful as you want if you are willing to let others take the credit.” 

Taking an honest look at yourself to determine if you are a manager or a boss and then taking appropriate action will lead to a much more effective team.

Happy employees will deliver happy customers.

Happy-Maker #7 is “Creating Team Players”. Develop a team spirit where each player is dedicated to their teammates’ success. Any team is only as strong as its weakest player, and everyone should be encouraged to develop and help their fellow team members.

Click here to see a list of the Top Ten Employee Happy-Makers.
 
If you’d like to be included in my weekly Sound ADvice newsletter, it’s free and arrives nearly every Wednesday in your inbox, simply ask me: Scott@ScLoHo.net
Generational Changes and Media Use

Generational Changes and Media Use

Frequently I’ve pushed back against generational stereotypes with the simple premise that activities and behaviors that are being assigned and labeled according to what generation a person is, are really due to lifestyle and life-stage.

And while many of that is still true, there are some big swings in media consumption that still can be broken down by generation due to the technology changes the past couple of decades.

Even the past 10+ years that I’ve worked for WOWO radio have seen a shift that should not be ignored.

MarketingCharts.com released an article on social media use that actually has a misleading headline: Most US Weekly Facebook Users are Gen Xers and Baby Boomers.

However looking at the actual chart and data from YouGov, the headline should have been Most US Weekly Facebook Users are Millennials, Gen Xers and Baby Boomers.

Those three generations make up 84% of Facebook users in the United States.  The Silent Generation, which are those still alive born before the end of World War 2 make up 1% and the youngest Generation, Gen Z account for 13% of Facebook users.

Overall, Facebook still is king with more users than any of the other social media platforms but it appears YouTube is close although many of us “older folks” don’t consider YouTube to be social media.  But with the popularity of video content verus still photos or no graphics, YouTube should be included even though they were not listed in the survey and article

So I decided to do a double check on the current ages of Gen Z and as of right now, 12 to 27 year olds are Zers.

The youngest most marketers usually target is around 12, so Gen Z is a real, viable target market for companies that produce products and services for teens and young adults.

To put that in perspective, 10, 11 years ago when I joined WOWO radio, some of them were still in diapers and none were old enough to vote yet.

IF that’s the age group you want to reach, you should dig a little deeper into social media and the various platforms and targeting potential.

However, here’s a reality that is back to the lifestyle and life-stage argument….

Most significant purchases are not made during the teen years or even by 20 year olds.  Look at age 35+, or even older like 45 or age 50+.

Gen Z is inching to that age but for the next decade, unless your consumer is in their 20’s and younger, you need to really continue to focus on older adults.

I call them “grown-ups” . They’re in their late 30’s, 40’s and 50’s making significant purchases for themselves and for their families.

My primary radio station, WOWO is a news talk formated radio station and we’ve seen wonderful results for our advertising partners.  I’m not arrogant enough to say that traditional radio ads are all you need to do.  I usually offer a number of items off the menu of messaging options that include traditional AM/FM radio ads, streaming, emails, texting, and social media including Facebook.

Do you want help sorting all this out to help you decide where to invest your ad dollars?  Want to talk with someone who’s got the experience in crafting solutions that are appropriate for your business and that sometimes includes connecting you with others that I trust?  Let’s talk.  Email Scott@ScLoHo.net

What Not to Expect from your Advertising

What Not to Expect from your Advertising

There are a lot of misconceptions about advertising that I find myself addressing repeatedly especially with new business people who ae taking their first steps into an advertising investment.

Last month I read a column in Radio Ink by Pat Bryson that I’m going to use today because her examples are spot on and very much in line with what I’ve been preaching.

First off, let’s define Advertising.  Advertising is paid messaging that usually includes a call-to- action, and or branding message.  I can simplify that further and tell you that advertising is a paid invitation from a business to a potential customer.

That’s it.

When you send out invitations, you are attempting to communicate a message to potential customers.

What happens next is entirely in your hands.   Here’s the words of wisdom from Pat:

What factors determine if a warm body makes a purchase? Several important factors must work together to complete the sale and turn that prospect into a customer that returns again and again:

  • Personnel that are well-trained and friendly
  • Value: price related to perceived benefit
  • Parking that is convenient and accessible
  • Seasonality
  • How does the store look?
  • Are the floor displays attractive? How are goods packaged?
  • Are the restrooms clean? (a surprisingly big factor especially for restaurants)
  • Where is the store located? Easy to get to?
  • What are consumers wanting to buy?
  • Competition: today both bricks and mortar and virtual
  • Is the store known for good service after the sale? How’s their reputation?
  • Advertising (finally!)

All of these factors must work together to produce a sale. Unfortunately, many times we get potential customers in and the client doesn’t sell them.

This is true no matter what form of advertising you buy.  There is only so much that that ads can do and the rest is up to you as a business owner.  Now I know that most advertising sales people don’t take the time to work with you to help you understand the consumer journey that help you improve it so your ads are more effective.  Wait, let me rephrase that.  It’s not making your ads more effective that I’m talking about, but the buying process that follows once the ads do their job.

Again, what’s the job of advertising?  It’s not to sell your stuff.  It’s to invite people to you so you and your team can help them buy your stuff.

Advertising is a simple paid invite.

If you want help with any or all of this, let’s talk.

A Few Personal Thoughts for August 2024

A Few Personal Thoughts for August 2024

It’s the first day of August 2024 as I write these words of an extra article on this website that is a personal reflection, marking a moment in time as we enter the final 5 months of the year.  Usually, most of my articles are related to Media, Marketing and Personal Insights.  This one is just the last without any Media and Marketing stuff, sort of like what I used to do before I launched this website in 2011 and these writings were being published on my ScLoHo Really? blog.  Also there is no podcast episode for this article.

Most days I don’t wake up to an alarm clock, unless I really have to be up earlier than normal.  I wake up naturally between 5 and 7am at the latest.  Today, I was out the door at 7am with a goal of enjoying the morning time before work and taking in some of the Sights Of The City.

The reason I capitalized Sights Of The City is that is the title of a series of Facebook posts I’ve been sharing deliberately since last summer.  These posts feature a picture I’ve snapped with my phone and often there is no explanation just a pic.  Some people comment and some try and guess where the picture was taken if it’s an unfamiliar shot.  The City happens to be where I’ve lived for the last 26 year, Fort Wayne Indiana.

Usually when I leave my home I swing by the nearest Taco Bell where I get a breakfast burrito for a buck fifty and a large Diet Dew, but they changed their hours from opening at 6:30 to 8am so that means I have some extra time beforehand.  Today I visited a few spots in town to take some more pictures and soak up the sunshine, plus get a little walking exercise along with the numerous others doing their early morning jogs and dog walks.

Before I was doing the Sights Of The City, I had another routine of grabbing my Taco Bell breakfast and heading to a park with water and posting those photos each day.  That was particularly helpful for my mental health during 2020.

As you recall, starting in March 2020, Indiana was shut down as a preventative measure to prevent the spread of the Covid-19 virus.  Like many of you, I was now working from home so to get out in the morning before jumping into my workday, was a great way to start my weekdays.

I’ve also noticed over the years that I enjoy spending a little bit of time around water.  I don’t need or want to live on a lake or river, but the opportunity to make a stop in my day to sit for a bit by a body of water is refreshing to me.

2020 was also a transition year for me.  Our company had some management changes that included my boss and friend Ben, to be promoted from General Sales Manager of WOWO radio, to VP/General Manager of Federated Media Fort Wayne. With Ben’s promotion, he needed to replace himself as General Sales Manager and in mid-February 2020, I took over as the GSM for WOWO.  Now instead of being one of 5 members of the WOWO advertising sales team, I was the leader, manager and coach of my former teammates which requires a very different skill set and revision of the application of my talents.  Fortunately, our company has an ongoing training and support system for this, but due to the pandemic restrictions, even that was upended as we adjusted to a video/virtual world instead of in-person meetings.

I served as General Sales Manager for close to 4 years including adding 3 more stations on an interim basis for the final year.  Me and my team were responsible for around 70% of the revenue for our Fort Wayne operations.  Deciding who was going to be on my sales team was one of the most important duties.  With WOWO, after a few months, I decided to let one of our underperforming sales persons go.  He was in his 4th year but performing as a Sophomore, not a Senior to put it in academic terms.  I was willing to help him get on track but he decided to refuse my help.

That was H.  During my management years, I also added and subtracted M.; W.; B.; G.; T; R.; T.; M, H.  That’s 10 people.  Two were hired by someone else and started the same week I took over in management.  Two of them quit on their own.  Two of them I hired for the radio station the Bear last summer (and one of those is still there).  Another in that list actually quit after I left management.

Despite helping two of my WOWO Sales Team reach new heights, we were starting to miss team budgets because of not having enough of the right players on our team.  When I moved to management, my role selling diminished.  The year before I moved to management, I won our company award for Account Executive of the Year and then spent the next couple of years transitioning nearly all of my accounts to others so I could focus on helping my team, not competing with my team.

In 4th quarter 2023 I stepped back from management and back to active sales on the WOWO Advertising Sales team.  We hired back a long time former Federated Media sales manager who initially took over the stations I was Interim General Sales Manager of, and then he also took over GSM duties for WOWO too.

A couple of big benefits for me is I’m not responsible for anyone other than myself again.  Instead of looking at spreadsheets and coaching our sales team, I get to spend my time working for my clients on my schedule.  Previously I had at least 9 weekly internal meetings, some weeks that ballooned up to 12.  For someone that is used to setting my own schedule in the office, that’s a lot of office time.

I used to brag to friends that there are only two hours a week that I needed to be at the office, and now that I’m back in active sales, that’s mostly true again.  Which leaves me with time to visit the various Sights Of The City, or a park with water, or take time off when needed.

Most weeks I am done by 3pm Friday because that’s the deadline for getting ads scheduled for the following Monday.  I’m usually putting in around 50 hours a week starting Sunday afternoons and some late evenings but most weekends start Friday around 4 and include all of Saturday as non-work time.

My wife and I have taken two long weekend vacations this year and I’ve got another trip planned for the end of this month to spend time with family because despite the fact I enjoy my work, it’s family I value above that, and while we can do video and voice, nothing beats a few hours in-person.

Speaking of family, both my wife and I have had daughters move out of state this year.  All of our 5 kids are from our first marriages, I had three, she had two and there are at least 11 grandkids ranging in age from preschool to in the Navy.  As an only child, I find it amazing that we have all this family!

I know that there is a whole lot of political news and international conflicts and all kinds of other things that take up space in all of our lives right now, but keeping ourselves centered is key to daily life.

Everyone of you and us have something going on in our lives “below the surface” that isn’t public.  For that reason alone, give others a little slack and grace. And give yourself some grace too.

The 64 year old ScLoHo has a lot more insight and perspective than I did when I was 32. There are a lot less big, life changing moments that we go thru than we think as we are going thru them.   There are a lot of little, life changing moments, and you and I get to have a lot more say in how our lives play out than we probably realize.  Spend your time on this planet wisely and that includes living a balanced life.   I get to serve as a volunteer again with some non-profits like I did before I was in management, perhaps that’s something you could do to?  The most recent was being a tech volunteer at our church running camera and powerpoints during some of the services this summer.  Other ways I serve are to use my professional experience in media and marketing and apply it to some non-profits that need my expertise.  The last couple of years I’ve resumed being a special guest speaker at area colleges and universities.

You have talents and abilities that you can give away too.

Even if you don’t sign up for anything, there are people around you that could use a friend, or at least a friendly ear. Not always to be their problem solver, but just to listen as they verbalize what’s going on and as they talk, they actually figure out their own solutions.  Can you do that?