CINCINNATI: Procter & Gamble has outlined where it believes it can generate more savings in its marketing expenditure – in addition to those already achieved by cutting its agency roster.
Last month, the FMCG giant announced it was reassessing where it put its promotional budget, and at an analyst day last Friday, Marc Pritchard, its Chief Brand Officer, laid out its marketing strategy for the future.
"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," he said.
That "open sourcing" approach is already being used with its upmarket skincare brand SK-II, where, Pritchard reported, ads have been produced at half the cost of traditional methods.
SK-II's new approach involved the brand's agency of record developing a broad campaign, with briefs for individual projects subsequently being allocated to other agencies.
Pritchard noted the scale of potential savings as P&G still spends $500m on advertising production around the world.
"We are also improving the efficiency and the effectiveness of our media investments by increasing media reach and continuity while optimising the mix across mediums," he added, revisiting a topic he addressed at Advertising Week New York in September.
"To make sure that our brands are top of mind when it's time to buy, we need broad media reach to create awareness among all potential category buyers," he said.
And that has to be done "across the range of communications methods that they use – search, social, online video, mobile, print, television and many others".
Accordingly, brands like Tide, for example, are increasing media reach by 10% to 20% in the US by shifting to more broadly appealing television shows and higher reach digital platforms.
"We are also increasing media continuity by bouncing spending more evenly across months and quarters on all brands to enable top of mind awareness year around," Pritchard revealed.
And at the same time, P&G's brands are using more short-form video formats – of five to six seconds – that aim to tackle ad-skipping behaviour.
Data sourced from Seeking Alpha; additional content by Warc staff