Proctor & Gamble’s Global Ad Spend Falls To 2006 Levels

Proctor & Gamble’s Global Ad Spend Falls To 2006 Levels

The world’s biggest advertiser, Proctor & Gamble, spent $US125 million less on advertising in the 12 months to June 2017 compared to numbers a year earlier, according to its annual report.

The main cause of the decrease in spend was due to it slashing $US140 million from its digital advertising spend earlier this year following the tribulations surrounding YouTube and ads being shown next to hate content.

Interestingly, the company noted despite the decrease in ad spend it did not have any noticeable affect on actual sales.

P&G has now slashed its ad spend by more than $US1 billion since 2013, when its annual advertising budget was $US8.19 billion.

Ad expense fell to $US7.9 billion in 2014 and $US7.2 billion in 2015, before rising to $US7.2 billion in 2016, and then dropping to $US7.1 billion in 2017.

The company again reported flat sales to June 2017 of $US65.1 billion. However, that’s down some $US9 billion from four years ago.

In April to June of this year the company cut its digital ad spending telling investors it wanted “to temporarily restrict spending in digital forums where our ads were not being placed according to our standards and specifications” amid fears its ads were being seen by bots and not humans.

During that time sales held steady and actually rose on an organic basis. The company determining that some of its digital spend had been ineffective.

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