Cost Cuts Are in Store for P&G and Unilever

After years of big run-ups in marketing spending, packaged-goods giants Procter & Gamble Co.and Unilever are trying to modify their increases and talking more about how to save money, which isn't exactly great news for agencies, production companies or the media -- unless you're in digital. Both marketers are focusing on digital with its nearly bottomless well of media inventory and ample opportunities for "earned" media.

P&G boosted ad spending $1.8 billion to $9.3 billion during the past two years. Unilever has added more than $1 billion to annual spending compared to three years ago to reach $8.2 billion in reported spending last year.

Both also have said they plan to spend more this year, but want to at least moderate the increase. P&G doesn't plan to increase its ad-spending-to-sales ratio this year after watching it rise more than two points to 11.3% last year. Unilever carved 0.7 points off its ratio to 13.3% last year.

http://adage.com/article/news/cost-cuts-store-p-g-unilever/232539/