1: James Stengel

Global marketing officer, Procter & Gamble Co.

Published on .

POWER PLAY: Following the acquisition of Gillette Co., P&G is the undisputed heavyweight champion of the ad world. P&G's sales closed in on $70 billion, up 20%, mainly from the addition of Gillette, as organic sales rose 6%. P&G and , 51, have sought better deals from media vendors, taking 10% off the TV upfront table. Wider rollout of marketing-mix modeling helped P&G improve efficiency; it also broadened efforts in digital media behind brands including Crest. Gillette embarked on its biggest launch in eight years with Fusion. As P&G continues to focus on raising the bar creatively, it gave Wieden & Kennedy creative and media duties globally on Old Spice and added DDB to the pharma roster on Actonel.

DOWNSIDE: P&G keeps hitting its targets but not as convincingly. The list of businesses facing trouble in the U.S. has broadened. Unilever claims to have wrested leadership (though P&G vigorously disputes this) in deodorants. Max Factor lost distribution in the three top drug chains and Target. Haircare and colorants, after rebounding last year, started losing share again. Better ads from foes slowed Iams' growth. Actonel lost share to upstart Boniva, whose ads P&G couldn't stop in court. Gillette helped add 14.4% to P&G's global ad spending, but that masked the fact that for the second straight year spending as a percent of sales declined. The lower ad spending rate accounted for all of P&G's improved net margin. P&G cited added clout from Gillette for improved spending efficiency.

AD BUDGET: $4.61 billion


* Aegis Group's Carat Americas, New York

* Havas' Arnold Worldwide, Boston

* Omnicom Group's BBDO Worldwide and DDB Worldwide, N.Y.

* Publicis Groupe's Leo Burnett Worldwide, Chicago; Bromley Communications, San Antonio; Conill, Kaplan Thaler Group and Publicis USA, N.Y.; Saatchi & Saatchi, N.Y. & Los Angeles; Starcom MediaVest Group, N.Y. and Chicago

* Publicis-backed Burrell Communications Group, Chicago

* WPP Group's Grey Worldwide and MediaCom, N.Y.

* Wieden & Kennedy, Portland, Ore.

* Carol H. Williams Advertising, Chicago
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