P & G - To Lay Off 1,600 After Discovering Social Media Advertising to be More Efficient.

Reality appears to have finally arrived at Procter & Gamble, the world's largest marketer, whose $10 billion annual ad budget has hurt the company's margins. P&G said it would lay off 1,600 staffers, including marketers, as part of a cost-cutting exercise.

CEO Robert McDonald told Wall Street analysts that he would have to "moderate" his ad budget because Facebook and Google can be "more efficient" than the traditional media that usually eats the lion's share of P&G's ad budget.

In the digital era, with Facebook, Google and others, the return on investment of advertising, when properly designed and managed, can be much more efficient.

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