Advertising Spending
But the silver lining is that October outperformed all other months so far in 2022. Digital, OOH and newspapers are among categories that grew.
FMCG
Global FMCG giant says it faces significant supply chain pressures
By our News Team | 2021
Proctor & Gamble, one of the world’s biggest advertisers, is increasing product prices to help offset rising costs but won’t cut its adspend.
Global FMCG giant Proctor & Gamble (P&G) says it is facing heavy pressure on its global supply chains and, as a result, is trying to offset the increased costs in various ways.
These include increasing product prices to consumers and re-evaluating its advertising strategies. While it won’t cut is adspend, the company intends to prioritise different advertising channels.
Procter & Gamble via Wikimedia Commons
Discussing its first quarter earnings this week, P&G said inflation and higher costs for producing and shipping goods had impacted profits. Although revenue for the quarter was ahead of expectations, it warned supply chain pressures would weigh heavy on its performance in the year ahead.
The company has already raised prices in some product categories, such as baby care, but confirmed more were on the way in its beauty, oral care and grooming categories as it struggles with rising commodity costs.
Marketing strategy will be adjusted
These negative pressures will ill also impact its advertising and marketing strategy for the immediate future.
P&G is said to be the biggest FMCG advertising spender in the world, and while other brands cut or halted spend through the pandemic, it maintained its investment into brands. In the year to June 2021, spend was up 12% to $8.2bn. In this first quarter, marketing spend was up another $130m.
The company’s Chief Financial Officer, Andre Schulten, justified the ongoing costs by saying consumers were turning to trusted brands and premium products, and with hefty marketing efforts it has been able to capitalise on that shift in behaviour and cement its superior positioning to ensure its products are still in demand as prices creep up post-pandemic.
Schulten emphasised that P&G will continue to invest in marketing and promotions. “As long as we create good ROI we will continue to invest,” he said.
Consumer Research
We’re so worried that the people we’re buying gifts for will be offended by our present, that we overspend or get them what they don’t want.
Brand Acquisitions
Study finds brand acquisitions may not work out as planned, as consumer perceptions of the brand become tainted. But this can be mitigated.
Supply Chain
Consumer-packaged goods industry in Africa is being ‘systematically transformed’ by Ramani’s ‘huge ambition’, investor says.
Executive Appointments
Zayd Abrahams joins from banking group FNB, where he currently leads marketing for the Personal Banking and Private Banking segments.
Marketing ROI
Despite evidence that shows it’s a bad idea, marketing budgets are often the first to be scrutinised and tightened in times of uncertainty.
Consumer Engagement
Strategies needed to optimise digital commitment from consumers have shifted as the global business and geopolitical landscape changes.
Traditional Media
Traditional media remains stronger on the continent than in developed markets, with relatively high cost of digital access being a factor.
Online Shopping
As retailers struggle, they may need to rein in their returns procedures, particularly for ‘serial returners’ and ‘retail borrowers’.
Sports Sponsorship
While Budweiser was caught off-guard by a surprise alcohol ban in stadiums, the company is taking a philosophical stance.
Advertising
High-profile names from TV, movies, music and social media feature in global ad that has 10 languages and four dialects.