P&G is upping its advertising and marketing spend following a quarter of sales growth for the Pampers and Febreze owner.
Backed its substantial financial punching power, P&G maintained strong levels of ad spend throughout the Covid pandemic and has continued to increase marketing investment in tandem with sales growth.
P&G saw significant volume growth in its key markets of the US and Europe, which saw a rise of 4% and 3% respectively in the face of significant price rises.
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The FMCG giant didn’t specify how much it had raised ad spend over the previous quarter, but CFO Andre Schulten did highlight its importance to the businesses growth: “If you look at the amount of innovation that’s coming to market, both currently and in the future, and if you look at the opportunity to fully penetrate households with that innovation in ways that delights them and improves their lives, now is not the time to be pulling back on investments in marketing or commercialisation efforts of that innovation.
“That’s where the majority of the incremental spend has come from and will come from.”
P&G CEO Jon Moller said that it is in-housing more of its media planning and placement activity in a bid to increase efficiency.
Having achieved considerable savings through this increased focus on ad spend efficiency, P&G has chosen to re-invest in its marketing operations.
Moller added: “We continue to see through the addition of many tools and data sets that we can increase the effectiveness of that advertising, increase the return rates of that advertising as you see in our bottom line, while increasing reach.”
