Procter & Gamble is shifting its U.S. marketing efforts to focus more on digital media, as much at 35 percent of its annual multi-billion dollar marketing budget is going to focus directly on digital media, like online ads and social media.
P&G chief executive officer, A.G. Lafley announced Thursday that the company’s spending on things like online ads and social media generally ranges from 25 to 35 percent of its budget and is now up to 35 percent in the U.S., P&G’s biggest market and where about a third of its revenue comes from.
The marketing shift reflects customer behavior as their attention is more focused digitally, and the company intends on increasing the effectiveness of the money it spends on advertising
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"The bottom line is we need and want to be where the consumer is, and increasingly that is online and mobile," a P&G spokesman said.
According to IRI Group and Kantar Media, companies that produce consumer packaged goods spent roughly $13.4billon on advertising last year in the U.S., 22.2 percent of which was spent on digital media.
The company hasn’t disclosed how much it spent on marketing in its recently ended fiscal year, but spent $9.3 billion marketing, which includes advertising in radio, print, television, digital and in-store ads in its 2012 fiscal year.
Procter & Gamble is well known for house old items like Tide detergent and Pantene products.