Source: AdNews
Publicis Groupe has formed a bespoke creative, media and PR team to serve the whole Procter & Gamble account in the UK.
This will create a one-stop agency shop with several agencies working on P&G brands from Saatchi & Saatchi’s central London offices.
The move comes only weeks after P&G consolidated all of its media into Publicis and is part of a broader strategy to streamline its agency arrangements across the world and cut its marketing budget by US$2 billion over the next five years.
The reductions include US$1 billion or more in media spend and another US$500 million on agency fees, in addition to about US$600 million of previous cuts that reduced P&G’s spending to around US$1.4 billion annually.
P&G has already cut a third of its creative and production fees globally. It estimates 95% of its creative work is handled by about 20% of its agencies but global marketing boss Marc Pritchard says the long tail of the other 80% is still too long.
Digital media is firmly in the crosshairs of Pritchard. P&G revealed it is breaking up its Hawkeye programmatic digital media buying operation, which includes ditching its original tech provider AudienceScience in favour of using different vendors regionally, such as Neustar and The Trade Desk.
This has motivated P&G to return to a full-service model, like the repositioning in the UK where all of its agencies will be housed under one roof.
This includes moving talent from Leo Burnett, Publcis Worldwide, Publicis Media and MSL into Saatchi & Saatchi London office, according to Campaign.
