The WSJ reports today that P&G and Google are swapping employees to get a better understanding of each other. With P&G as one of the leading advertising companies in the world, this move has long reaching upside for Google and P&G.

I’ve noted that Yahoo and Google shouldn’t be focusing on each other, they should focus on growing the market and this move goes further than replicating the Madison Avenue model. If Google can show how it creates value to P&G, and P&G can explain how it builds brands, these two players will revolutionize how interactive marketing is done.

During downturns, companies are forced to find new ways to compete that are under-leveraged while creating real consumer value. What P&G begins testing out of this relationship will be worth watching. At a minimum, Google will better understand what big companies need and how to go after a bigger piece of the traditional marketing pie.

For any company interested in expanding its reach and depth with consumers, delving into interactive ways to foster brand engagement has value. How the execution of that plan will unfold will be worth watching. While products can be meticulously market tested for launch, can the same methods be made for the social arena?

Dell’s move with IdeaStorm will go down as a very progressive, cutting edge way to involve customers in a collaborative and interactive way which makes sense for a computer company. P&G’s issue will be transference of everyday use to online interaction.

P&G’s ability to consistently and successfully launch break through products shows their NPD strength. Can they translate that ability into the amorphous social media space? Using education, showcasing and interaction that is less brand dependent, they have a chance to be sure, whether they can see past providing a branded experience created to push a call to action is P&G, and most company’s, main marketing challenge.

Innovation through Social Media at P&G via The Buzz Bin