Procter & Gamble Moves North American Management Business To Omnicom

Procter & Gamble moves its media buying and planning business to Omnicom.

The famous advertising investor has awarded Omnicom Group with a huge number of its media buying and planning business in North America. This is the biggest high profile review of this year, with the announcement made on Monday.

Omnicom Media group, being responsible for the company products, will now handle most of the Procter & Gamble North American operations. No decisions have been made yet as to which of the agencies are going to be handling which sorts of products such as home care health care products, Fabric and many other of the organization’s services.

The global brand officer of P&G, Marc Pritchard said during an interview, “What we are trying to do is find the best partner to help us really innovate in media and reach and attract more users to our brands with better precision and also greater efficiency. Omnicom demonstrated superior and proven performance in the area of data analytics, planning and buying, innovation, talent and financial value.” 

Pritchard believes this move is going to increase efficiency in the business operations with the help of another firm. Where one firm is at an advantage, another is at a loss; Publicis Groupe used to have the pleasure to run the business operations and media account in the region before. SMG was the company’s preferable firm for its important operations for 15 year and Carat for 10 years, which is evidently no longer the case. However, Starcom Mediavest Group is still handling Duracell products in America and might be doing so in Canada.

Some of P&G brands are Tide detergent and Pampers diapers, the company is looking to reduce the amount of agencies and relationships it is connected to in order cut it expenditures on them, also this creates inefficiency and makes the business difficult. The organization was reported to invest $2.7 billion on advertising a year before while it spent $3.1 billion in 2013. Now it is seeking to cut the extra expenses, by also selling 100 of its brands and make 10 products its focus.

This move might be good for the company because reducing products will give it time to give extra attention to the 10 decided products. However, it still has plans to spend on global media, it has cut 40% of agencies it was working with internationally saving around $300 million.

The products and services provider is the first client of Omnicom, some of the business of the company is still going to be handled by Carat.

PG stock closed at $77.75, going red by -0.79% on December 8.