Paid advertising is suffering huge spending cuts as marketers question its relevance and effectiveness for today’s consumer. P&G has cut its agency spend by $750m in the past three years and plans to increase that figure to $1.2bn by 2021.
The exponential rise in ad blockers demonstrates consumers are voting with their feet to experience content in ad-free environments. In an age of transparency and fake news, mass advertising feels ham-fisted and just doesn’t cut it any more. To compound this, paid costs are rising sharply as platforms reach maximum ad load. Facebook CPMs increased by 171% during the first half of 2017 alone according to adstage.
Employee advocacy has gained traction for CMOs as a more direct approach to consumers, which delivers stronger ROI. Below we take a look at how it delivers on the bottom line.