US consumer packaged goods giant Procter & Gamble is set to cut $1.5bn from its marketing budget over the next five years, with at least $1bn cut specifically from media, according to a Q1 earnings call. P&G is on a mission to reduce inefficiency and eliminate "supply chain waste". The company will also be cutting costs by $200m in advertising spending this year, down from $350m last year.
US consumer packaged goods giant Procter & Gamble is set to cut $1.5bn from its marketing budget over the next five years, with at least $1bn cut specifically from media, according to a Q1 earnings call. P&G is on a mission to reduce inefficiency and eliminate "supply chain waste". It has already halved its agency roster from 6,000, while future campaigns "must drive awareness, household penetration and share growth for at least one full year" and will be examined by a panel of objective experts to determine their effectiveness, according to CFO Jon Moeller.