- Proctor & Gamble (P&G) said that nearly 30% of its $7 billion global media spend is being planned in-house. These are the details.
Proctor & Gamble (P&G) said that nearly 30% of its $7 billion global media spend is being planned in-house, according to The Drum. P&G’s in-house agency is handling the oral care business for the company following a media review between them and agencies Carat and Omnicom’s Hearts and Sciences.
During the Morgan Stanley Global Consumer and Retail conference, P&G chief brand officer Marc S. Pritchard expressed enthusiasm about bringing some of the media planning in-house.
“Reinventing advertising means reinventing agency partnerships moving from brand people who outsource too much of their work to brand entrepreneurs with their hands on the keyboard,” said Pritchard at the event via The Drum. “P&G people are doing more media planning in-house with nearly 30% of our media spending already planned in-house.”
P&G is also handling a large portion of its creative and production in-house. For example, P&G decided to handle the creatives for its Secret deodorant brand in June rather than sending the business to Wieden+Kennedy. As a result, P&G can create an ad for a tenth of the costs and in one month rather than five months. In one of the ads, P&G opted to shoot it in Cincinnati with the associate brand director working as the producer and a company brand manager as the creative director.
“Secret sales have consistently grown mid-single digits since in-sourcing this work. Our agency reinvention has not only saved $1 billion over the last five years, it’s also leading to more creativity, agility, and entrepreneurship, and helping to transform our organization and culture,” added Pritchard at the event.
Pritchard also believes that the company can also achieve more savings with advertising supply costs. And the company plans to ramp up its “fix and flow” model. For the Oral Care division, P&G placed some of its own employees with representatives from media and creative agencies into a team called “Woven.”
