- According to new estimates by Advertising Age, Procter & Gamble Co. remains the second-largest advertiser in the United States, trailing only Comcast Corp. for total U.S spending in 2017.
- P&G had been No. 1 in U.S. ad spend in 2015 ($4.3 billion) and 2014 ($4.6 billion).
Procter & Gamble Co. remains the second-largest advertiser in the United States, trailing only Comcast Corp. for total U.S spending in 2017, according to new estimates by Advertising Age.
However, two other Cincinnati-based companies cut ad spend and dropped in the annual ranking.
Macy’s Inc. spent nearly $1.4 billion in 2017, down from more than $1.5 billion the year before, and slipped seven spots to No. 33 among the 200 leading national advertisers.
Kroger Co. spent $707 million, down from $717 million in 2016, and fell three positions to No. 69, according to Ad Age.
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Procter & Gamble, the maker of consumer goods such as Olay skin care, spent nearly $4.4 billion to advertise its brands last year, according to Ad Age. That was up slightly from more than $4.3 billion in 2016.
Luxottica Group, an Italian firm whose North American retail operations are based in Mason, was No. 136 with total U.S. ad spend of $328 million. U.S. measured media ad spend was $47 million for Luxottica, which owns LensCrafters and Pearle Vision as well as Ray-Ban and Oakley brand eyeglasses.
Philadelphia-based Comcast Corp. remained the nation’s largest advertiser, spending more than $5.7 billion in 2017 to promote its cable TV service, film studio and theme parks. That was up from more than $5.6 billion in 2016.
P&G had been No. 1 in U.S. ad spend in 2015 ($4.3 billion) and 2014 ($4.6 billion).
Procter & Gamble’s global advertising budget is usually about 11 percent of annual sales, which were more than $65 billion in the fiscal year that ended in June 2017. Ad budgets were higher before P&G completed a streamlining effort in 2016 that involved exiting dozens of brands to focus on those most profitable.
A P&G spokesperson told me the company doesn’t comment on third party reports such as Ad Age’s annual listing of U.S. advertising spend. Often such data isn’t accurate because the reporting company doesn’t have access to the full scope of P&G’s media spending, the spokesperson said.
More than $2.6 billion of P&G’s 2017 advertising spend went to U.S. measured media, which includes TV, radio, newspaper, magazine and outdoor advertising, according to Ad Age, which cited WPP’s Kantar Media as the source.
Macy’s measured media spend was $415 million, while Kroger’s was $137 million.
Unmeasured avenues that factor into the totals for ad spending include internet and mobile media (search, marketing, internet display, social media, online video and other digital media), promotion, experiential marketing and direct marketing.
P&G reported spending more than $7 billion worldwide on advertising during the fiscal year that ended in June 2017, and digital accounted for about one-third of the total.
P&G was No. 1 in measured U.S. ad spending on broadcast network TV in 2017 with slightly more than $1 billion, according to Ad Age.
Procter & Gamble also was No. 1 in measured U.S. cable TV network ad spending last year with $724 million.
Macy’s was No. 3 in measured U.S. newspaper ad spending last year with $76 million. The department store chain and online retailer was No. 9 in measured network national spot and local radio ad spending with $56 million.
P&G was No. 2 in measured U.S. magazine ad spending with $562 million. No. 1 was rival L’Oréal ($704 million), which operates a manufacturing plant in Florence where hair care products are made for the L’Oréal Paris, Garnier, Matrix and Redken brands. The Northern Kentucky plant is New York-based L’Oréal USA’s largest manufacturing site.
P&G was the largest advertiser of personal care products based on measured media in 2017, with its $1.3 billion spend accounting for 22.4 percent. L’Oréal was No. 2 with 19.9 percent based on a $1.2 billion spend.
L’Oréal Paris was the No. 1 brand when it came to the share of U.S. personal care measured-media spending, accounting for 8.4 percent based on $491 million in spend.
P&G’s Olay skin care was the No. 3 brand related to share of U.S. personal care measured-media spending, accounting for 4.5 percent based on a spend of $266 million.
Other P&G brands that ranked high related to share of U.S. personal care measured-media spending included:
No. 7: Always feminine hygiene products (2.8 percent; $165 million)
No. 8: Crest toothpaste (2.6 percent; $155 million)
No. 9: Pantene shampoo and conditioner (2.4 percent; $139 million)
No. 10: Gillette razors and shave cream (2.2 percent; $131 million).
P&G dominated U.S. household product measured-media spending last year:
No. 1: Tide laundry detergent (11.6 percent of ad spending based on $233 million)
No. 2: Downy fabric care (7.7 percent; $154 million)
No. 3: Febreze air freshener (6.3 percent; $126 million)
No. 6: Charmin toilet paper (4.8 percent; $6 million)
No. 7: Bounty paper towels (4.7 percent; $94 million)
No. 8: Gain laundry detergent (3.3 percent; $65 million)
No. 9: Swiffer mops (3.3 percent; $65 million).
The Kroger grocery store chain was No. 9 among U.S. market leaders by category last year, accounting for 3.6 percent of U.S. retail sales. Macy’s was No. 3 with a 0.7 percent share of U.S. retail sales.
No. 1 among market leaders by category was Amazon, which accounted for a 2.8 percent share of U.S. retail sales and spent more than $3.3 billion on total U.S. advertising in 2017. That compared with Macy’s more than $1.4 billion and Kroger’s $707 million.
Date: July 4, 2018
Source: CINCINNATI Business Couriier