Procter & Gamble has announced it is aiming to cut production and agency costs by a further $400million by July 2021, according to Chairman and CEO David Taylor.
According to Taylor, who spoke at the Consumer Analyst Group of New York conference this week, the company has continued to slash the number of agencies it works with from around 6,000 to 2,500, and is planning to cut this by a further 1250 going forwards.
Looking to its internal teams for media buying, David Taylor said, “We continue to reinvent our agency relationships, consolidating and upgrading P&G’s agency capabilities, to deliver the best brand building creativity.
“Looking ahead we see further cost reduction opportunities through private marketplace deals with media companies, and precision media buying fuelled by data and digital technology.”
Taylor also spoke of the company’s plans to create more media transparency, continuing, “A year ago we raised the bar on the marketing world by shining a light on the need for media transparency.
“The progress has been strong in the past year, and we’re about 90% complete. We now largely have the objective third party data needed to make good spending decisions.
“Over the past year we’ve already found as much as 20% media waste, which we’ve removed and reinvested to increase media reach by about 10%, and samplings up by 50%.”