BRAND SPEND ANALYSIS: Change is afoot at Procter & Gamble as the UK’s top advertiser changes tack

Procter & Gamble is Britain’s biggest advertiser, having spent almost pounds 800 million on advertising over the past five years - pounds 188 million in the year to April 2000.

Procter & Gamble is Britain’s biggest advertiser, having spent

almost pounds 800 million on advertising over the past five years -

pounds 188 million in the year to April 2000.



On the face of it, P&G very much fits the profile of a global fmcg

business, spending large amounts of money (mostly on television) to

support a variety of well-known household brands.



However, recent events have revealed a business in transformation. A

third profit warning in six months resulted in the departure of P&G’s

chairman and chief executive Durk Jager, a halving of its share price

and the launch of a programme called Organisation 2005. This strategy

has been designed to refocus the business and, in particular, the way it

brands and markets its products.



Agencies P&G uses Saatchi & Saatchi, Grey Advertising, Leo Burnett and

D’Arcy for creative work, Starcom Motive Partnership, MediaCom and

MediaVest for media buying, and all creative agencies bar Leo Burnett

for major planning work.



Total spend and the media mix P&G spent pounds 188 million on

advertising in the year to April 2000, mostly on television (67 per

cent) followed by direct mail (14 per cent), press (10 per cent),

outdoor (5 per cent) and radio. Spend was spread fairly evenly over the

year, except for a concentration of television spend in the summer

months.



Spend details P&G spread its cash across more than 150 brands over the

past year. The biggest brands advertised included Bounty kitchen towel

(pounds 8.6 million), Secret cream deodorant (pounds 8.5 million), the

ubiquitous Sunny Delight (pounds 8 million), Charmin (pounds 7 million),

Always sanitary towels (pounds 5.8 million), Pampers (pounds 5.6

million), Temp (pounds 5 million) and Fairy (pounds 4.6 million).



Below these ’super brands’, adspend tended to be focused on a number of

mini-brands, each with its own advertising budget. Although spend on the

larger brands was spread across most media, many smaller-spending brands

(pounds 300,000 or less) tended to favour just one medium. P&G’s

favourite television station is Carlton (attracting 12 per cent of total

TV spend), although the advertiser used more than 70 satellite stations

last year.



Conclusion P&G’s recent announcement that it is to spend less on

television and more on direct and internet marketing signals significant

change for this major advertiser.



The company is already testing an online initiative that allows

consumers to send specially tailored gift packages of P&G products to

third parties.



The new chief executive has gone on record as saying he wants the

business to be less predictable, less analytical, and to follow a

riskier, more innovative business strategy.



If P&G really has given up on its mass-market, big-bang marketing model,

we can expect some interesting ad campaigns to appear over the coming

year.





Research by AC Nielsen MMS tel: 01344-627553 www.mediamonitoring.com.



Become a member of Campaign from just £46 a quarter

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.co.uk ,plus get exclusive discounts to Campaign events

Become a member

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

Partner content