P&G Shifts Focus from Spend to Reach

Procter & Gamble, the world’s largest advertiser, has switched its efforts to measuring ad reach rather than ad spend. The company is reinvesting the parts of its media budget it found were being wasted into increasing the number of people it reaches rather than worrying about how much it is spending overall.

“We’re finding that we’re reaching more people and we’re trying to reduce the amount of times we reach the same person over and over again,” said Marc Pritchard, P&G’s brand boss. “Excess frequency is the biggest waste and in every aspect of our media we’re finding waste to allow us to be able to invest back in creating reach.”

According to Pritchard, transparency and bursting advertising’s bubble by creating more controversial ads will be the keys to increasing their reach. As of now, the company has cut its marketing spending by $200m with no signs of decreased effectiveness. (Marketing Week, 06.17.19)

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