P&G to save up to $500m in global agency spending

It appears lot of multinational companies are strategically looking into ways of cutting global agency cost while aiming to improve the effectiveness of their marketing. P&G has just announced that it plans to save as much as US$500 million in agency spend.

This is the latest in what has been two years of marketing changes at the company. The firm has now said that a consolidation of agencies globally is what it is considering next.

Chief financial officer Jon Moeller made these announcements in a conference call on Thursday.

According to Ad Age, a large part of marketing cost-cuts will be around “non-media costs”. One such cost is in the area of agency spending, Moeller was quoted as saying. This includes fees and production costs for agencies it uses for marketing.

P&G's shift to digital media has led to a substantial increase in agency and production outlays.