P&G announces Yahoo! ad buy

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Procter & Gamble Co. expands its Web presence July 1 with an integrated ad buy across Yahoo! that will feature Pringles, Pepto-Bismol, Pampers and nine other P&G brands. Yahoo! is touting the buy as significant because it is the first major outlay of its Fusion Marketing Online program which includes direct marketing, branding and integrated content offerings customized for advertisers.

Financial terms and the length of the deal were not disclosed. While P&G spent $3.7 billion dollars worldwide in advertising in 1998, it spent only a fraction of that in online media.

The deal with P&G includes cost-per-thousand revenue on ads placed across Yahoo!'s properties, fees from co-creating microsites for P&G's various brands and a return on investment component in which Yahoo! will receive fees based on the percentage of users who register for a particular P&G promotion.

In one integrated promotion, for instance, Yahoo! created a game called Pringles Ladders. In a Pepto-Bismol promotion, Yahoo! created "Hot Summer Relief,'' a storyline featuring five young characters who are traveling around the world, and have a need for various Pepto-Bismol products. Many of the deals include integration with Yahoo! chat, message boards and other product features.

Yahoo! President-Chief Operating Officer Jeffrey Mallett said the portal was one of two major online media players on which P&G chose to focus its online media efforts, but that the deal was not exclusive.

"We had a large enough footprint, so they could get a large enough sampling base,'' Mr. Mallett said, adding that P&G also liked that Yahoo! could do direct marketing and branding.

Yahoo! has 47 million registered users.

Copyright July 1999, Crain Communications Inc.

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