Media spending is ‘attractive’ for P&G CFO

FMCG giant Procter & Gamble is finding increased efficiency in its media buying and digital targeting in ways that its CFO believes “makes investment in media spending more attractive”. 

Speaking during a Q3 earnings call, Andre Schulten said that “as ad spending becomes more efficient, with our ability to in-house both scheduling and buying of media, [with] more digital capability to be more targeted, that increases the ROI of every dollar we can spend”.

Why it matters

Every company is facing differing degrees of uncertainty which depends on their exposure to changing consumer behaviours resulting from an inflationary cost-of-living crisis and a volatile global geopolitical environment. While the initial instinct may be to batten down the hatches, P&G – the world’s largest advertiser, remember – believes, in Schulten’s words, “this is a rough patch to grow through, not a reason to reduce investment in the long-term health of our business”.

Takeaways 

• P&G is aiming to generate $400m–$500m a year from media programmatic savings, both in terms of scheduling and buying capabilities around the world. 
• Those savings will be reinvested in media and in funding ongoing “superiority-driven innovation across product, package, communication and retail execution”.
• CEO Jon Moeller added that in many categories the business is not at target levels of reach. “That’s a very high ROI activity. When we can reduce wasted frequency, reinvest that into expanded reach, very good things happen,” he said.

Sourced from Seeking Alpha