PG Cuts Ad Spending
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The move by P&G to cut back on ad spending has raised a lot of eyebrows especially since their declaration that they would not budge on modifying their marketing strategy for 2009. But like most companies, it is apparent that these declarations are cover ups to avoid causing a panic and tarnishing their brand image. And while they may look sheepish, the bottom line is corporate survival.
According to one top-tier cable network executive, P&G has begun “canceling all second-quarter options, across the board,” a development that appears to contradict what A.G. Lafley told investors on Jan. 30, when he said the CPG giant would “absolutely not” cut into its ad spend. “We have held our marketing spending and advertising spending,” Lafley said in P&G’s latest earnings call. “In fact, what is really going on is the advertising markets are softening and for the same dollar we are buying more delivery.”
(Source) Media Week
