Research: P&G Shifts Ad Budgets to Magazines

Procter & Gamble seems to be moving incremental advertising dollars into magazines. P&G is still the nation’s biggest advertiser, but it’s dialing back those marketing dollars (see box  below)  and shifting some of its focus from television to magazines, Dan Monk, a reporter from the Business Courier in Cincinnati, where P&G’s headquarters are, reports.  As Portada reported yesterday, 4 of the 10 major Hispanic magazine ad campaigns during the January –February 2012 quarter were by P&G brands.

Top 10 Advertisers in 2011

Rank Company Year 2011
(US $ millions)
Year 2010
(US $ millions)
% Change
1 Procter & Gamble Co $2,949.1 $3,116.9 -5.4
2 AT&T $1,924.6 $2,180.0 -11.7
3 General Motors Corp $1,784.1 $2,127.0 -16.1
4 Verizon Communications $1,636.9 $1,856.8 -11.
5 Comcast Corp $1,577.2 $1,416.6 11.3
6 L'Oreal SA $1,343.5 $1,137.8 18.1
7 Time Warner Inc $1,279.4 $1,137.8 5.8
8 Pfizer Inc $1,203.5 $1,209.8 -2.2
9 Chrysler Group $1,193.0 $875.7 36.2
10 News Corp $1,170.5 $1,362.2 -14.1

Source: Kantar Media

According to Kantar Media P&G spent $2.95 billion in 2011, down 5.4 percent from the prior year. P&G remained the nation’s largest TV advertiser despite a 6.8 percent spending dip to $1.7 billion. P&G ranked second in Hispanic Media spending, at $210 million, down 9.6 percent from 2010. A March 12 news release from Kantar Media says it’s the 9th straight year that P&G has ranked as the top advertiser in the U.S.

“While TV is still the foundation of its advertising media buys, P&G’s 2011 budget allocation saw share gains for magazines at the expense of TV,” the release stated. “Those numbers reflect a more targeted approach to media buying by P&G” Michael Mc Carthy, a marketing professor at Miami University, told the Business Courier in Cincinnati.   “They’ll be using TV as the foundation for the foreseeable future,” McCarthy said. “But I think what they’re finding is those incremental dollars don’t get you more return, compared to putting those dollars into more targeted media.”

McCarthy said magazines might be getting an increased share of P&G’s advertising dollars because the industry has reliable metrics that can be used to target specific audiences. Digital measuring, including click-through counts and products that measure social-media mentions, “are not nearly as well established as the traditional media,” McCarthy concluded.


Trackback from your site.

Marcos Baer @MarcosBaer

Marcos oversees editorial and sales. He is based in Portada's NYC headquarters. Prior to launching Portada in 2003, Marcos worked in both the media and finance sectors. He occupied leading roles at the Spanish edition of The Wall Street Journal, in Spain’s newspaper Cinco Dias and at SwissRe. He is an MBA, and a CFA. Marcos is a print junkie and also loves all things digital media. He also is passionate about everything related to New York City and loves to play tennis.

MORE FROM PORTADA

#Portada16: Are Multicultural Media Buying Agencies Necessary?

#Portada16: Are Multicultural Media Buying Agencies Necessary?

One of the key highlights of the many sessions of #Portada16, co-produced with MediaPost last week, was the panel "Do Multicultural Media Buying Agencies have a Reason to Exist? The panelists argued passionately on a topic that is at the very crux of Multicultural Marketing and Media.


Lionsgate & Univision Launch Spanish-Language Movie Streaming Service 

Lionsgate & Univision Launch Spanish-Language Movie Streaming Service 

Lionsgate, the next generation global content leader, and Univision Communications Inc. are teaming to launch a premium subscription video on demand (SVOD) service for the booming Hispanic movie-going audience in the U.S.The new premium on demand movie service will tap base of more than 50 million hispanic consumers in the U.S.


IPG Mediabrands and Innovid Announce Partnership, New Technology to Improve OTT Video Experience

IPG Mediabrands and Innovid Announce Partnership, New Technology to Improve OTT Video Experience

IPG Mediabrands and Innovid have launched a partnership and set of products that could make waves in the video advertising world.