P&G, the UK's second biggest advertiser after the Central Office of Information, cut its spend last year by 13.4% to £154.9m, according to Marketing's data for 2009.
Irwin Lee, vice-president and general manager of P&G UK and Ireland, told the that the company's sales growth was well ahead of the market which was either flat or grew just 1% to 2% in most categories.
News of a hike in budget is welcome for the beleagured UK media industry, but Lee said that P&G would be seeking efficiency savings in return for spending more, as well as looking at different ways of spending on TV programmes and new kinds of advertorials.
P&G brands include Fairy washing up liquid, Ariel detergent, Pampers nappies and Pringles crisps.
Lee told the newspaper that P&G was seeing consumers returning to old purchasing habits after focusing on value and shopping around in the wake of the downturn.
"Over the last few quarters we've seen this trade-down aspect ease up quite a bit and we're now beginning to see consumers trading back up. They're coming back to the brands they have trusted all their lives."