P&G's 10% Solution: Integrating Reach, Effectiveness, Efficiency In Media Plans


Procter & Gamble Chief Brand Officer Marc Pritchard said today that marketers need to focus more on growing markets and not just their share of markets. That, he added, is “good for everybody,” and certainly a win-win for the industry and the economy.  

Pritchard made his remarks at the ANA Media Conference in Orlando.  



Media used effectively and efficiently can help grow markets, Pritchard added. Media and advertising are at the center of P&G’s strategy to create “superior performing brands,” that grow markets.  

Media reach, effectiveness and efficiency are just as key today as they’ve been in the past, he said.  

P&G’s goal is to reach 100% of the market for some products, like laundry products and toothpaste. But that’s easier said than done. In the U.S. the company’s average reach is 75% of adults, which is up from 65% five years ago.   

Demographics are important and the company has focused on boosting its reach to multicultural consumers, doubling spending over the past decade.  

As to effectiveness, the most important metric is sales effectiveness and the industry is still falling short in delivery of those metrics, he said.  

Media also has to be efficient and profitable from an ROI standpoint. He pointed to the ANA’s recent study on waste in the programmatic ad arena where the study found that only 36 cents of every dollar reaches the consumer in the form of an ad.   

Part of the problem, he added is “zero transparency” with some programmatic platforms, which he did name. “You know who you are,” he said.   

“I would say the most urgent action needed is to address the media supply chain, that just has way too many touches where money gets taken along the way.”  

Avoiding excess frequency will also help, Pritchard said. “We’re still flying with a sheet over the windshield among media providers with no idea how many times a consumer sees the same ad on the same day across platforms, websites and TVs.”  

Part of the solution is to integrate reach, effectiveness and efficiency in media plans because they “mutually reinforce each other and create an integrated flywheel of growth value creation,” allowing for greater investment. P&G’s in-house media teams have worked hard on integration issues, he said, “and agencies are stepping up too.”  

Pritchard said that in “every brand country where we’ve done in-house media, it’s saving us at least 10% a year.” It’s also increased speed to market and “is leading to higher levels of effectiveness largely because P&G people have hands-on accountability,” and can make better decisions about integration and driving media ROI.  

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