P&G Gets 5% More Media for $440 Million Less

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Procter & Gamble Co. cut marketing spending more than $440 million globally last quarter, yet still increased media weight or impressions 5%, executives said today, and the company is eyeing more cost concessions from media as the TV upfront nears.
In all, marketing-spending cuts by the world's largest advertiser, including traditional advertising and shopper marketing, amounted to 2.4% of sales, a P&G spokesman said.
That means P&G's marketing cuts last quarter amounted to about 5% of its reported advertising spending for the entire fiscal year that ended last June. If sustained for a full year, last quarter's spending level likely would reduce the company's ad-to-sales ratio to its lowest level in at least 15 years.
Yet because of sharply falling media rates around the world, the company actually increased media weight about 5%, P&G Chief Financial Officer Jon Moeller said on an earnings conference call today.