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20 January 2023
P&G media buying is ‘sufficiently funded’
Procter & Gamble’s CFO describes the CPG giant’s approach to media buying as “sufficiency at lower cost”.
What it means
Speaking on a Q2 earnings call, Andre Schulten explained that P&G’s current business is “sufficiently funded in order to continue growing our brands, our top-of-mind awareness and our equity”. He defined “sufficiently funded” as having enough reach and frequency.
“It’s not defined as dollars spent,” he added. While the business increased its total ad spending by $140m quarter over quarter, that was down to several factors, including innovation timing, merchandising support and “core timing advertising with that retailer support”.
The Baby Care business in the US grew 10% last year, in part by rethinking the way it runs its media.
Schulten reported 20% increased reach and 26% increased top-of-mind awareness, all this while saving 15% of media spend. “So the equation here really allows for sufficiency at lower cost.”
The Fabric Care team in the US brought media planning and buying in-house, developing proprietary algorithms to better place ads in TV programming, leading to savings of $65m in one year, while also increasing frequency.
“When consumers see the benefit our brands can deliver, the value will be clear to them, and our ability to communicate that value clearly is critical, and that’s why we continue to invest in both the performance as well as the communication” – Andrew Schulten, CFO, Procter & Gamble.