Good(ish) News From Procter & Gamble: No Ad Cutback Here
Procter & Gamble (PG), which spends upwards of $6.7 billion a year on advertising, won’t be trimming that number, even though the company missed its earnings goal and cut its guidance last Friday. The people behind… well, pretty much every packaged consumer good in the world, aren’t going to stop pushing those brands like Tide, Gillette, Pampers, etc.
But they are getting more bang for their buck, CEO A.G. Lafley said during the company’s earnings call last week. And they are planning on spending some of those dollars in different ways. That may mean more digital–and more coupons and in-store displays. Transcript from Seeking Alpha:
We have held our marketing spending, advertising spending and in fact what is really going on is the advertising markets are softening and for the same dollar we are buying more delivery…we have been shifting support in general to the store and the point of purchase….It is couponing in markets where couponing is a well established consumer habit and coupon redemptions go up in recessionary times. In markets like the U.S. we have clearly shifted dollars to coupons….Then depending on the market we are doing more digital and there are a number of categories that are doing quite well with the digital.”
There’s your good news for the day, media folks. Now you have to figure out how to capitalize on it.
[Image Credit: Clean Wal-Mart]