Procter & Gamble initiates review of North America media roster
Procter & Gamble (P&G) is reviewing its North America media agency roster as part of a wider revamp of its advertising and media partners that could save as much as $500m in annual fees.
An official announcement is expected later this week, according to reports. It could have long-term implications on the account’s incumbents Starcom MediaVest Group and Carat, both of which have worked with P&G for a decade or longer.
The review comes just five months after the arrival of Kristie Decker as the company’s new US media chief.
P&G has been making wholesale changes to its marketing in order to unearth cheaper, more cost-effective practices that has already seen it initiate plans to sell off 100 brands. The agency cull will target fees, production costs for its media, advertising, PR, package design and in-store activation partners.
During a call with analysts last month, P&G’s chief financial officer Jon Moeller said: “We plan to significantly simplify and reduce the number of agency relationships and the costs associated with the current complexity and inefficiency while upgrading agency capability to improve creative quality and communication effectiveness.”
The FMCG business spent $9.2bn into advertising in the 12 months to June 2014, down from $9.6bn the previous year, according to its annual report.