Gillette Corp. plans to conduct a cost-focused review of Gillette's $600 million global advertising account. All external spending, direct and indirect, is up for review.
In his first public engagement since taking over as Gillette's CEO, Mr. Kilts blamed the quantity of Gillette ad spending rather than the quality of creative and said the company also needs to improve "integrated marketing intelligence" and the analytic capability needed to develop the right media mix for its brands.
He praised BBDO's work on the current Venus women's razor launch, calling it the highest-testing advertising in Gillette history, and said the launch is ahead of plan so far in both distribution and consumer sales.
Omnicom Group's BBDO Worldwide is by far Gillette's biggest agency, handling the flagship Gillette men's and women's shaving business, Duracell batteries and Right Guard and Soft & Dri deodorant brands along with media buying. Interpublic Group of Cos.' Lowe Lintas & Partners handles the Braun men's shaving and Oral-B oral care businesses. A Gillette spokesman said the review would include ad agencies.
Gillette's ad spending as a percent of sales has declined to 5.6% from around 8% since the early 1990s, adding that ad spending has fallen $58 million to $608 million since 1995, despite a 5% annual media inflation rate. The company plans to control trade spending and increase ad spending by an unspecified amount, funding some of the increased media budget from improved productivity, which includes the Strategic Sourcing Initiative.
Our typical marketing budget is usually 10 per cent of the topline spend
There are some forces impacting the way our business works. The IT/ITeS sector has changed tremendously. Platforms like Twitter have made everyone journalists. Smartphones have made everyone a photographer. The trend that we are seeing is one of hyperdigitalization, which is causing the lines between product and services to blur. For example, <a href=http://www.exchange4media.com/company/news/amaz...
The OOH sector is among the fastest growing, globally. Brands and marketers have realized its potential and impact and begun to craft medium-specific adverts. Self-regulation is not only necessary but also essential to growth of the sector. The industry needs to exercise a certain level of this self-restraint to prove its commitment to maintaining the best standards in advertising.
<b>Clients are looking for experiential solutions beyond radio or print: Abraham Thomas, Radio City 91.1 FM</b><br><br> From entering new markets to launching large format events, Radio City 91.1FM has been on a roll. The radio channel recently announced the launch of India’s biggest singing talent hunt-Radio City Super Singer Season 8. Earlier this year, the channel set up its own creative-cum...
The interesting animated rap music video encapsulates Droom’s ecosystem tools and their role in facilitating second-hand automobile transactions
Perfumes are invisible and these new ads from Skinn create a story out of this
New campaign aims at first-time users by providing ‘first-night free’ – a first-ever offering by the brand on online hotels booking