Marc Pritchard, Global Brand Officer at Procter & Gamble – the manufacturer of brands like Tide detergent, Bounty paper towels and Crest toothpaste – discussed this subject at the Association of National Advertisers’ (ANA) 2018 Media Conference.
“For media, data and analytics is enabling us to bring more media planning in-house, replacing multiple layers,” he said. (For more details, read WARC’s in-depth report: Procter & Gamble “reinvents” the agency relationship.)
This move, he reported, is largely a reaction to the fact that consistently “outsourcing” work to agencies has yielded “too many touchpoints between brand managers and consumers”, and elevated project management instead of brand management.
“When it comes to buying, our purchasing people can negotiate with the best of them, so we’re doing more private marketplace deals in-house,” Pritchard said.
“And if entrepreneurs can buy digital media, why can’t the brand team on Tide, Dawn and Crest be entrepreneurs and do the same? They can, and they will.”
Turning to creative agencies, Pritchard reaffirmed that Procter & Gamble was committed to investing in this space as a conduit for building its brands.
“But creatives represent less than half of agency resources, because they’re surrounded by excess management, buildings and overhead,” he said.
“It’s time to disrupt this archaic ‘Mad Men’ model, eliminating the silos between creatives, clients and consumers, and stripping away anything that doesn’t add to creative output.”
A third priority involves reuniting creative and media. This goal can be achieved in practice, for example, by “co-locating” experts in these two disciplines, even if they work at different agencies.
“As the media world became more fragmented and fast-paced, the separation led to silos, extra touches, complexity and cost,” said Pritchard.
“Through data and analytics, we can now bring media and creative back together for more growth with greater efficiency.”
Sourced from WARC