As part of cost-cutting due to flat market shares and growing investor pressure, Procter & Gamble Co plans to eliminate about 1,600 "overhead" including some in marketing -- banking on digital marketing to help contain long-term media spending.
The plan was announced by executives at the company's earnings conference. Reality appears to have finally dawned at Procter & Gamble, the world's largest marketer, whose USD 10 billion annual marketing budget has hurt the company's margins.
Company CEO Bob McDonald said he expects its marketing costs to moderate as it moves into the digital arena, citing the billions of free impressions generated by Internet-only ad campaigns, like P&G's Old Spice commercials in recent years.
