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
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
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
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.