P&G cuts back on US television adspend in upfront season

NEW YORK - Procter & Gamble is cutting back on television advertising in the US and looking at shifting to other methods of marketing, it is being reported.

According to The Wall Street Journal, P&G's decision to shift away from traditional television advertising was revealed during the upfront season, the period where major advertisers negotiate airtime from the US terrestrial networks ahead of the new season of programming.

The paper reports that P&G is cutting advertising on cable television by as much as 25%, while on the major networks it will be down by 5%. In the first quarter of this year, it cut its adspend on US TV by 8% to $677.3m (£375m.)

It also says that P&G, which owns brands including Pringles and Pampers, is looking at non-traditional methods of getting its products national television airtime, including product placement.

The company is the biggest advertiser in the US, but it has been making moves to look beyond the 30-second television commercial to find new ways of marketing its products.

Last year, marketing chief Jim Stengel told a conference of ad agencies that advertisers must embrace changing viewing habits and the rise of the remote control and personal television recorders.

Stengel's response is that P&G should start creating advertising that viewers want to watch.

However, the WSJ reports that there is speculation that P&G's decision to reduce its upfront commitments could be a ploy to wait until airtime prices fall, before investing more money in the medium later this year.

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