P&G set to focus adspend on direct mail and the net

Procter & Gamble, the biggest TV advertiser of 1999, is set to spend more of its media budget on direct mail and the web in a bid to forge closer relationships with consumers.

Procter & Gamble, the biggest TV advertiser of 1999, is set to

spend more of its media budget on direct mail and the web in a bid to

forge closer relationships with consumers.



The reasons behind the company’s refocus have been attributed to

inflated TV prices and the need to justify spend by producing direct

response results.



P&G has already dropped its television adspend by 25 per cent for the

first quarter of this year.



Last year, the fmcg giant spent pounds 65 million on advertising, of

which pounds 34 million went on television.



However, P&G has recently invested in interactive TV ads with its

campaigns for toilet roll brand Charmin (Media Business, 10 July) and

Olay.



To reflect the change in strategy, from the start of this month P&G will

pay agencies based on incoming sales of advertised brands .



Previously, P&G had awarded agencies a direct percentage of total media

spend. This meant the company had been heavily reliant on traditional

media.



However, industry sceptics said the news should be taken with a ’pinch

of salt’, especially as P&G recently ploughed a significant amount of

money into a television campaign for Sunny Delight.



Brand Spend Analysis, p14.