P&G Finally Embraces Facebook

In the Consumer Packaged Goods (CPG) world, when Procter & Gamble (P&G) makes a move, every one of its competitors take notice. That’s because P&G is the world’s branding powerhouse, owner of 300 brands with such legendary names as Crest, Gillette, Ivory and Tide.

P&G has long been known as a marketing innovator. The company was, of course, among the first sponsors of “soap operas,” but more recently, P&G has used every media imaginable to relentlessly push its brands. That’s why it’s more than curious that P&G has been somewhat late to the social media party.

In fact, in November 2008, Ted McConnell, P&G’s general manager of interactive and innovation, told a conference in Cincinnati, P&G’s hometown, that he was anything but enthusiastic about Facebook. “What in heaven’s name made you think you could monetize the real estate in which somebody is breaking up with their girlfriend? …I don’t think everything every consumer says to someone else and writes down is somehow monetizable by the media industry,” McConnell said.

My, Ted, how things have changed. Little more than a year later, P&G just announced that it has opened a Silicon Valley office specifically to “help develop social-networking systems and digital-marketing capabilities,” according to Advertising Age. Venture capitalist David Hornik, who met with P&G executives, reported that “P&G’s explicit goal for 2010 is to assure that each of its brands has a meaningful presence on Facebook, and they are willing to pay dearly for that. …[P&G leaders] view Facebook as a must-have for digital advertising and brand building.”

When P&G does anything, it does it in a very big way, so this latest move is clearly signaling that social media is to be taken seriously by P&G – and therefore by the whole marketing industry, which follows its every move.

Interestingly, on the very same day that the P&G story broke, Advertising Age also  reported that Clorox (a P&G arch-rival) was seeking a full-time in-house legal counsel to focus on social media. This is yet another sign of how important social media has become to big marketers. A Clorox spokesman told Advertising Age:

“Social-media channels are a growing focus for consumer communication and stakeholder engagement for our brands and company. As a newer communication channel, the application of existing laws to this medium is evolving. For those reasons and the rapid pace of communication in the Web 2.0 world, we’re seeking an attorney to focus on social media as well as talent rights.”

Maybe it doesn’t seem like such big news to hear that Procter & Gamble and Clorox are finally focusing on social media, but it matters. These guys are now drinking the social media Kool-aid. When you see companies of this size and stature going full-speed ahead with the likes of Facebook, you know mass adoption of Facebook as a business marketing medium for all CPG companies, and all marketers for that matter, is just around the corner.