Following news that Procter & Gamble is looking at ways to reduce its marketing spend, the personal care giant is said to be looking at open sourcing and pooling production to lower costs further.
The company has recently focused on slashing agency costs in a bid to make $8bn worth of cuts, slashing its 6000 agencies by 50 percent since 2014. However, it is now looking at other methods to reduce spend even further.
Speaking at an analyst event in Cincinnati last week, Marketing Chief Marc Pritchard said, “We see more savings runway ahead using digital technology for production, pooling more production and also using open sourcing and creativity in our work to create advertising, both within and outside of existing agency networks.”
The new process of open sourcing has been used on the brand SK-II, where agency Leo Burnett devises the overarching campaign, before briefs for the individual projects are given out to other agencies, according to the Drum. This is said to have resulted in a 50 percent spend reduction than on a traditional campaign.
Pritchard continued, “By improving the efficiency and the effectiveness of our marketing spending, P&G brands are continually improving productivity to grow users and drive top and bottom-line growth.”