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P&G Increases Quarterly Digital Spend by 18 Percent

10 Jun, 2009 Response This Week

BATAVIA, Ohio – Although TNS Media Intelligence reports that Procter & Gamble (P&G) cut its U.S. measured media spending by 18 percent last quarter, it more than doubled its spending on Internet display ads, reports

“I’ve got a lot of passion for digital,” says Mar Pritchard, global marketing officer, P&G, who plans to broaden his duties next month over design and PR as global brand-building officer. “It is such an incredible way to connect with consumers and really have much deeper ongoing relationships with them … Our media strategy is pretty simple: Follow the consumers. And the consumer is becoming more and more engaged in the digital world.”

While P&G cut network television advertising spending by 44 percent, online display advertising still only accounted for 4 percent of its $672 million quarterly measured advertising. And as a whole, digital media did not exceed 5 percent of P&G’s entire marketing spend last year.

P&G is not the only consumer packaged-goods (CPG) distributor spending more on online. For example, Johnson & Johnson (J&J) hiked its measured spending overall last quarter by 28 percent and nearly doubled its Internet-display spending to $15.5 million – that amounts 4 percent of its total $397 million outlay.

According data from the Interactive Advertising Bureau, CPG digital spending went up more than 60 percent last year to $1.5 billion, increasing its small share of all digital media spend by two percentage points in one year to 6 percent.

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