Gillette is set to review $600 million of advertising and is planning to increase the level of its adspend.
Chairman/ceo James Kilts announced that the group is to embark on a “strategic sourcing initiative” to review all external spending, a program that will include ad agencies – “even,” he added ominously, “if there are long-standing relationships with existing suppliers.”
Most of Gillette’s advertising business is with BBDO Worldwide, including its flagship toiletries brands, Duracell batteries and deodorant lines Soft & Dri and Right Guard. Lowe Lintas & Partners is responsible for the Braun shaving and Oral-B dental hygiene marques.
Calling for an improvement in “integrated marketing intelligence”, Kilts added that he intended to increase adspend, despite praising the quality of the creative work produced by incumbent agencies (especially BBDO’s campaign for Venus women’s razors).
Kilts lamented that adspend had fallen from 8% of sales a decade ago to 5.6%, dropping $58m to $608m since 1995. Part of the extra adspend, he added, would come from improved productivity resulting from the strategic sourcing initiative.
News source: Advertising Age - Daily Deadline