P&G Cuts Marketing Budget by $10 Billion To Focus on Digital
Procter and Gamble announced this week that it is cutting $10 billion from its marketing budget. The cut doesn’t stem from a bad economy or weak quarter, according to Chairman-CEO Bob McDonald. Instead, it is designed to take advantage of the increased efficiency of reaching consumers on the web.
“We’re using technology to shift our spending from more traditional advertising and television to digital and mobile advertising,” McDonald explained at a recent Consumer Analyst Group conference. He argued to investors that these cuts wouldn’t hurt P&G’s brands, Advertising Age reports. On the contrary, the company’s budget-cutting efforts aim to show investors how they’re “tapping digital’s lower costs and social power” to “get more bang for their buck.”
Yes, watching companies as big as P&G definitely shows that digital marketing for brands is here to stay. But part of this “plan” includes the cutting of 5,700 jobs – so the win stings. What do you think – will these efforts will pay off?
P&G marketing spend as a percentage of sales