P&G now does 30% of its media planning internally

Procter & Gamble (P&G) said nearly 30% of its $ 7 billion global media spending is now planned internally.

P&G has made no secret of its internal ambitions, stating in 2018 that it would start managing parts of media, production and creation on its own. A year later, in early 2019, she orchestrated a massive overhaul of her media agency structure in North America to fuel this plan.

Its in-house agency took a greater share of the media activity, particularly on its oral care business, following a media review that pitted the team against its long-time agencies Carat and Omnicom’s. Hearts and Sciences.

At the Morgan Stanley Global Consumer and Retail conference this week, P&G Brand Director Marc Pritchard praised the results.

“Reinventing advertising means reinventing agency partnerships by moving from brands that outsource too much of their work to branded entrepreneurs who have their hands on the keyboard,” he said. “P&G employees do more media planning internally with almost 30% of our media spending already planned internally. “

It’s not just the media over which its internal teams have gained more control. P&G also brought more creativity and production in-house. The case study on the effectiveness of this movement comes in the form of Secret, his brand of deodorant.

In June, she chose to end her referral agency relationship with Wieden + Kennedy and began creating and producing commercials on her own. Pritchard says he can now produce an ad “for as little as a tenth the cost and in a month for five.”

For a recent commercial, he chose to shoot it at the company’s headquarters in Cincinnati with the associate brand director acting as the producer and his brand director as the creative director.

“It’s a winner in the market,” he said. “Secret sales have steadily increased in the mid-range since this job was internalized. The reinvention of our agency has not only saved $ 1 billion over the past five years, it has also led to more creativity, agility and entrepreneurship, and has helped transform our organization and our culture.

But even after realizing those savings, Pritchard said he believes there is scope to further reduce ad supply costs; a familiar and disturbing message to his list of 3,000 agencies.

It will step up its so-called “fix and flow” model and continue to bring its own employees as well as people from media, creative and production agencies into one unit across more brands. He has already tried it with his Oral Care division where he united all his agencies into a single team called “Woven”.

“It takes time, touches and distance, but it cuts costs first,” he said.

“We’re seeing a lot more innovation and creativity and quite frankly I’ve seen the bar rise in terms of creativity, responsiveness and collaboration. So I think it’s actually starting to have a positive effect on the creative agency in the industry.

Pritchard said he is eyeing the production sector for the coming year. “In-house production on Secret gives us the opportunity to be able to bring some of that production in-house and also reduce costs, because this production supply chain in the industry is quite expensive.

“We also see that there are opportunities in other non-work expenses, in terms of display costs and other types of marketing materials that we’re really just starting out on. “

Cathy W. Howerton