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P&G Making Changes to Ad Strategy to Save $400 Million

P&G has been battling the digital ad industry for well over a year now. They have been unhappy with transparency, fraud, and a variety of other things. They also seem to be well-aware that digital ads are an important component of any major advertising strategy.

Their latest effort to improve performance and reduce costs is going to be implementing new agency models. They will also be cutting the number of agencies that they are willing to work with by about half.

According to the Chairman and Chief Executive, David taylor, this will save them about $400 million. They have already cut the number of agencies that they work with from 6000 down to 2500 since 2015, which helped them to save $750 million. This eliminated all the worst performing, and least trusted agencies.

The second phase of this move is going to be cutting out agencies that likely perform, but are failing in one way or another to meet the P&G standards.

Taylor said, “We continue to reinvent our agency relationships, consolidating and upgrading P&G’s agency capabilities to deliver the best brand-building creativity.”

This ongoing effort is expected to save as much as $2 billion by the end of 2021, though it is also likely that they will modify their strategy further between now and then. P&G is very focused on performance when it comes to their billions in ad spend, and they are really looking to demand the very best from every agency they work with.

Pesach Lattin
Pesach Lattin
Pesach "Pace" Lattin is one of the top experts in interactive advertising, affiliate marketing. Pesach Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.

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