MFG 2.0

Why Would Proctor & Gamble, Google Swap Employees?

I just read an interesting story in the Silicon Valley/San Jose Business Journal about an innovative program being developed between CPG heavyweight Proctor & Gamble and search giant Google that hopes to function as a marketing knowledge exchange.

"About two dozen workers at the two companies have switched workplaces over a period of weeks this year, according to The Wall Street Journal. For P&G, the nation’s largest consumer products company, the program is expected to offer a glimpse into the emerging youth market, which spends more time online than in front of a television."

Google owns 74 percent of the “search term” advertising spending, and Cincinnati-based P&G ranked as the nation’s largest advertiser. However, the Cincinnati-based manufacturer is looking to increase the share of this ad spend devoted to online marketing, rather than print, broadcast and events. The benefit for P&G is obvious -- having a team of search optimization experts on site that can also serve as an ad hoc focus group for new and innovative digitial advertising ventures like those described in the article.

"While P&G spends billions in advertising annually, a small share had traditionally been earmarked for Web promotions or even blogging sites. But P&G has been more active of late – in mid-November it announced the launch of its virtual “Pampers Village” here, a site that includes articles, blogging and promotions for Pampers diapers.

Among the revelations for P&G workers: Google data revealed that online searches for the word “coupons” rose about 50 percent in a 12-month period."

Sounds like a mutually beneficial relationship for these two giants of their respective industries.

original WSJ story (subscription required):

During a session on evaluating in-store displays, a P&G marketer described the company's standard method, known as "stop, hold, close": Product packaging first needs to "stop" a shopper, Mr. Lichtig said. "Hold" is a pause to read the label, and "close" is when a shopper puts the product in the cart.

Google's Ms. Chudy gasped. "This is just like our text ads," she said. The headline is the "stop," its description is the "hold" and the "close" is clicking through to the Web site.

TAGS: Innovation
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