The world’s largest advertiser, Procter & Gamble, has shifted the majority of its media business to Dentsu Aegis Network’s Carat, which now has more than half of the CPG giant’s North America assignment.
Parties with direct business knowledge stated that Carat will now be in control of media buying and billing for a larger share of the business. In recent months, Carat had already been working on different portions of P&G’s media and has been slowly taking on more of it. Since winning a late 2015 review, Hearts & Science will not be handling some of the brands that it previously worked on.
As P&G moves more work in-house, sources say that Carat will be now playing a media activation role.
A P&G spokesman said that while it made no comment on agency assignments they are constantly working to optimize media buy, and they will be working closely with the P&G media agencies to ensure that the work is done.
He added: “We clearly see an important role for the agencies. Previously, we outsourced all our work from planning to buying through bill pay to an agency.” They are now providing a little more flexibility to brands to let them decide if they intend to do their own planning, digital buying or whether they would prefer to put their hands on the keyboard for search and programmatic. This will put their brands closer to decisions that drive their growth.
The spokesman further added that P&G is in partnership with agencies as it continues its explorations of a new media model for fiscal year 19-20 which will ensure that their brand will be in best control of their growth levers while maintaining the significant scale advantage Procter & Gamble currently sees.
While reducing another $400 million in advertising costs by 2021, the company stated that they would be looking to bring more media buying in-house.
David Taylor, the P&G Chairman, and CEO stated: “Looking ahead we see further cost reduction opportunities through private marketplace deals with media companies, and precision media buying fueled by data and digital technology.”
Founded over 180 years ago, as a simple soap and candle company, Procter & Gamble has become the world’s largest consumer goods company. They are a global company that is governed ethically and responsibly, is open and transparent and protects the environment while supporting good causes.
Founded in 1968 in the United Kingdom, Carter is a media agency specializing in media planning and buying while providing digital and non-traditional media solutions. Working across platforms, CARAT creates innovative media campaigns that deliver real business value.