P&G to cut $2bn off marketing spending

Procter & Gamble wants to cut a whopping $2 billion in marketing spending over five years, and for the first time is providing details on a broader $10 billion cost-cutting plan launched a year ago.

That marketing spending cut comes amid a fiscal third-quarter earnings report where the company missed on sales-growth expectations and lost market-share in developing markets despite hiking ad spending.

While the cost cuts were the biggest takeaway, P&G also outlined how it plans to become “irresistibly superior” in the eyes of consumers. First, those massive cuts: They include $1 billion or more in media and around $500 million in agency fees, which comes on top of $600 million of cuts in prior years that reduced P&G’s spending there to around $1.4 billion annually.

A spokeswoman said this doesn’t necessarily mean P&G’s spending on creative costs will fall under $1 billion a year, given growth that may otherwise occur.