What Procter & Gamble is doing is 1-part about a slowing economy and 2-parts about the Web being more efficient in helping the consumer goods giant reach consumers and sell products.

SAI’s Michael Learmonth asks: will TV dollars move online in a 1-to-1 ratio?

Hmm… nope! Did print dollars move to the Web in a 1-to-1 ratio? Nope. Combined the TV, print, radio dollars that move online will prove to become considerable - as we are seeing now - but the absolute dollars lost from each media will be far greater than what is gained by the Web. Why?

It’s simple, the Web shrinks the media business. To Web companies, that is a very good thing because cost structures permit us to operate in a leaner world. Moreover the pricing advantage allows us to undercut and overdeliver relative to the traditional media companies.

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