Digital Likely to Gain as P&G Focuses on ROI, Tempers Marketing Spend
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Procter & Gamble Co. will hike ad spending next year, but not as fast as the 1% to 2% sales growth it expects globally. This part of its plan to step up focus on effectiveness in part by holding all brands to minimum standards for marketing return on investment. All of which is likely to be good news for the digital space.
The company beat expectations for top-line growth and earnings last quarter. But in the first quarterly earnings report since A.G. Lafley returned as Chairman-CEO, P&G is also tempering forecasts for market-share growth.
While P&G is ahead of targets for cost savings and headcount reduction under its restructuring plan, it’s planning to take more savings to the bottom line this year and less to marketing spending as it steps up efforts to restrain costs there.
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