THE WHAT? Procter & Gamble increased its spend on advertising by 12 percent in the 12 months to June 2021, to total US$8.2 billion, according to a report published by PR Week.
THE DETAILS The US FMCG manufacturer’s ad spend has risen 21 percent in the last two years from US$6.75 billion in 2019, despite the disruption caused by the pandemic. As a percentage of sales, the cost of advertising came in at 10.8 percent.
THE WHY? P&G’s rising share values correlate with increased investment in marketing. CEO David Taylor told analysts on an earnings call, per PR Week, “You’ll recall very well and if you go back four or five years, our average growth was about 2 percent. [In the] past five years, we’ve averaged 4 percent; in the last three years, 6 percent…
“We’re improving the efficiency and effectiveness of our advertising investments, bringing some media planning work in house to achieve greater cost efficiency, while also enabling us to place ads with greater precision based on more granular analytics to increase effectiveness.”