Procter & Gamble is said to be planning to up its advertising spend this year, by mid- to single digits, according to a report published by The Drum.
The US FMCG giant spent an additional US$450 million in the last quarter of fiscal 2016, and will continue to invest, specifically in reaching first-time users and mobile. “The right way to build a company is to bring consumers into the category when they first have a need,” commented CEO David Taylor on a recent investors call.
However, in order to fund the rise in advertising spend, the company is looking at cost-cutting measures in a bid to reduce its sizeable spend on agency fees, which The Drum estimates at US$1.4 billion annually. As a result, P&G will continue to review its media accounts worldwide this year, with the London business the first up on the agenda.