Procter & Gamble Co plans to eliminate about 1,600 non- manufacturing jobs — including some in marketing — banking on digital marketing to help contain long-term media spending.
The plan was announced by executives at the company’s earnings conference at Houston. Procter & Gamble is one of the world’s largest marketer, with an annual ad budget of about USD 10 billion.
According to a marketing expert at Washington University in St Louis, Procter & Gamble is banking on digital marketing to help contain media spending in the long-term. P&G is still planning on spending 9 – 11% of sales on advertising, they will just be doing so selectively.
“In the digital space, with things like Facebook and Google and others, we find that return on investment of the advertising when properly designed, when the big idea is there, can be much more efficient” – Bob McDonald, Chairman-CEO.