As every good CEO knows, constantly watching return on investment is crucial to the organizations success. Proctor and Gambles CEO Bob McDonald announced workforce reductions to the tune of 1,600 employees in nonmanufacturing and marketing jobs.
McDonald does not plan to eliminate spending on advertising and marketing. Rather, he is simply recognizing the benefit of social media to companies that tap its potential wisely.
I believe this is a good decision. The power of social media is here to stay. The companies that capitalize on it will do so to their enhanced success. The ones that dont will live to regret it . . if they live.
You can pay for all your advertising and marketing, or you can rely on social media to do it all, or you can execute a combined approach. The wisdom required by the leadership of each company will be knowing exactly where to strike that balance.