Procter & Gamble—ad spending, facts and profile

Overview Procter & Gamble Co., the giant of cleaning and personal care products, ranked as the No. 3 advertiser in Ad Age Leading National Advertisers 2024 ranking based on estimated U.S. marketing spending. P&G ranked No. 3 in the Ad Age World’s Largest Advertisers 2024 ranking based on estimated worldwide marketing spending. P&G markets its products in about 180 countries and territories. P&G’s headquarters is in Cincinnati. Business segments and operations See more: P&G’s business and brands Largest customers: P&G’s largest customer is Walmart. Sales to Walmart (including Walmart and Sam’s Club) represented about 16% of worldwide sales in fiscal 2024 (year ended June 2024); 15% from fiscal 2018 through fiscal 2023; 16% in fiscal 2017; 15% of worldwide sales in fiscal 2016, 2015 and 2014; 14% in 2013 and 2012; 15% in 2011; 16% in 2010, 2009 and 2008; and 15% in 2007 and 2006. P&G said in its 10-K for the year ended June 2024: “No other customer represents more than 10% of our total sales. Our top ten customers accounted for 42% of our total net sales in 2024, 40% in 2023 and 39% in 2022.” Those percentages were 39% in 2021; 38% in 2020; 36% in 2019 and 2018; 35% in 2017, 2016, 2015 and 2014; 33% in 2013; 31% in 2012; 32% in 2011 and 2010; 30% in 2009; 31% in 2008; and 30% in 2007. Marketing spending P&G appears in the World’s Largest Advertisers and Leading National Advertisers rankings based on Ad Age’s estimate of P&G “marketing spending.” P&G’s definition of “marketing spending” includes “advertising costs” and non-advertising marketing spending. P&G’s stated worldwide “advertising costs” include worldwide TV, print, radio, digital and in-store advertising expenses. Non-advertising-related components of marketing spending reported in selling, general and administrative (SG&A) expense include costs associated with consumer promotions, product sampling and sales aids. Marketing spending reported in SG&A excludes trade promotions. The 10-K for the year ended June 2024 said: “Trade promotions, consisting primarily of customer pricing allowances, merchandising funds and consumer coupons, are offered through various programs to customers and consumers. Sales are recorded net of trade promotion spending, which is recognized as incurred at the time of the sale. Most of these arrangements have terms of approximately one year.” Worldwide ad spending: Ad Age estimates that P&G spent $12.7 billion on worldwide marketing in the year ended June 2024, including advertising costs and non-advertising marketing spending. In its 10-K filing, the company disclosed worldwide advertising costs of $9.6 billion in the year ended June 2024. P&G ranked No. 3 in the Ad Age World’s Largest Advertisers 2024 report (based on Ad Age’s calculation of estimated P&G marketing spending for the year ended June 2024); No. 4 in the 2023 report; No. 4 in the 2022 report; No. 1 in the 2021 report; No. 2 in the 2020 report; No. 1 in the 2019 report; No. 2 in the 2018 report; No. 1 in the 2017 report; and No. 1 in the 2016 report. U.S. ad spending: Ad Age estimates that P&G spent $6.1 billion on U.S. marketing in the year ended June 2024, including advertising costs and non-advertising marketing spending. P&G ranked No. 3 in the Ad Age Leading National Advertisers 2024 ranking (based on Ad Age’s calculation of estimated P&G marketing spending for the year ended June 2024). In the 69 Leading National Advertisers reports Ad Age published from 1956 through 2024, P&G was the No. 1 U.S. advertiser in 42 years (most recently in 2016); No. 2 in 19 years; No. 3 in five years (2001, 2003, 2022, 2023 and 2024); and No. 4 in three years (2019, 2020 and 2021). Marketing spending as percent of sales: P&G disclosures about worldwide “marketing spending” (formerly referred to as “advertising plus other marketing costs”) for fiscal years ended June 30: 2024: “Marketing spending as a percentage of net sales increased 170 basis points,” or 1.7 percentage points, “as the increase in marketing spending was partially offset by the positive scale impacts of the net sales increase and productivity savings.” That implies marketing spending was about 15.17% of net sales (modeled on the fiscal 2023 percentage shown below). That in turn implies worldwide marketing spending of $12.749 billion in the year ended June 2024. 2023: “Marketing spending as a percentage of net sales decreased 40 basis points,” or 0.4 percentage points, “due to the positive scale impacts of the net sales increase and increased productivity savings, partially offset by increased media reinvestments.” That implies marketing spending was about 13.47% of net sales (modeled on the fiscal 2022 percentage shown below). That in turn implies worldwide marketing spending of $11.046 billion in the year ended June 2023. 2022: “Marketing spending as a percentage of net sales decreased 120 basis points,” or 1.2 percentage points, “due primarily to the positive scale impacts of the net sales increase and, to a lesser extent, due to increased media and production cost savings and decreased media spending.” That implies marketing spending was about 13.87% of net sales (modeled on the fiscal 2021 percentage shown below). That in turn implies worldwide marketing spending of $11.122 billion in the year ended June 2022. 2021: “Marketing spending as a percentage of net sales was unchanged, as investments in media and other marketing spending were offset by the positive scale impacts of the net sales increase and savings in agency compensation and production costs.” That implies marketing spending was about 15.07% of net sales (modeled on the fiscal-2020 percentage shown below). That in turn implies worldwide marketing spending of $11.471 billion in the year ended June 2021. 2020: “Marketing spending as a percentage of net sales increased 10 basis points due to investments in media and other marketing spending, partially offset by the positive scale impacts of the net sales increase and savings in agency compensation, production costs and advertising spending.” That implies marketing spending was about 15.07% of net sales (modeled on the fiscal 2019 percentage shown below). That in turn implies worldwide marketing spending of $10.692 billion in the year ended June 2020. 2019: “Marketing spending as a percentage of net sales decreased 80 basis points due to the positive scale impacts of the organic net sales increase, reductions in agency compensation and the impact of adopting the new standard on ‘Revenue from Contracts with Customers’ which prospectively reclassified certain customer spending from marketing (SG&A) expense to a reduction of net sales,” according to the 10-K for year ended June 2019. That implies marketing spending was about 14.97% of net sales (modeled on the fiscal 2018 percentage shown below). That in turn implies worldwide marketing spending of $10.132 billion in the year ended June 2019. 2018: “Marketing spending as a percentage of net sales decreased 30 basis points, primarily driven by reductions in agency compensation and production costs,” according to the 10-K for year ended June 2018. That implies marketing spending was about 15.77% of net sales (modeled on the fiscal 2017 percentage shown below). That in turn implies worldwide marketing spending of $10.539 billion in the year ended June 2018. 2017: “Marketing spending as a percentage of net sales increased 10 basis points due to an increase in marketing activities, partially offset by productivity savings,” according to the 10-K for year ended June 2017. That implies marketing spending was about 16.07% of net sales (modeled on the fiscal 2016 percentage shown below). That in turn implies worldwide marketing spending of $10.455 billion in year ended June 2017 (excluding spending on beauty brands that were reported as discontinued operations). 2016: “Marketing spending as a percentage of net sales increased 90 basis points due to the negative scale impacts from reduced sales,” according to the 10-K for year ended June 2016. That implies marketing spending was about 15.97% of net sales (modeled on the fiscal 2015 percentages shown below). That in turn implies worldwide marketing spending of $10.428 billion in year ended June 2016 (excluding spending on beauty brands and Duracell batteries that were reported as discontinued operations). 2015: “Marketing spending as a percentage of net sales decreased 60 basis points behind lower spending due to efficiency efforts,” according to the 10-K for year ended June 2015. That implies marketing spending was about 15.07% of net sales (modeled on the fiscal 2014 and fiscal 2013 percentages shown below). That in turn implies worldwide marketing spending of $11.495 billion in year ended June 2015 (excluding spending on pet food and Duracell, which were reported as discontinued operations). Estimated worldwide marketing spending, calculated as 15.07% of net sales for year ended June 2015, as restated in the 10-K published for year ended June 2016, was $10.662 billion. That factors out spending on beauty brands that P&G sold to Coty in 2016. 2014: “Marketing spending as a percentage of net sales decreased 80 basis points primarily due to lower spending behind a focus on more efficient marketing support and scale benefits from increased net sales,” according to the 10-K for year ended June 2014. That implies marketing spending was about 15.67% of sales (modeled on the fiscal 2013 percentage shown below). Then-CFO (now CEO) Jon Moeller in November 2014 said marketing was “roughly at $13 billion spend pool”; $13 billion equaled 15.65% of stated revenue for year ended June 2014 (including Duracell and excluding pet food), tracking closely to the implied 15.67%. 2013: Implied worldwide advertising plus other marketing costs of $13.864 billion (before later restatements following P&G’s divestitures of pet food and Duracell). This is Ad Age Datacenter’s estimate of spending based on the 10-K’s noting a “10 basis point increase in marketing spending as a percentage of net sales,” which implied 16.47% of sales (modeled on the fiscal-2012 percentage shown below from February 2013. Figures do not factor in P&G’s restatements of advertising and sales following divestitures. 2012: Stated worldwide advertising plus other marketing costs of $13.700 billion. Figure stated in February 2013. Based on stated sales and ad-spending figures at the time (before later post-divestiture restatements), that implied 16.37% of sales; implying 5.20% or $4.355 billion in “other marketing costs” since stated advertising costs were 11.17%. That implies that advertising accounted for 68.21% of advertising plus other marketing costs. (P&G in September 2012 disclosed rounded percentages of “11.2%” for advertising and “5.3%” for other marketing.) 2011: Estimated $13.300 billion. Estimated figure based on chart P&G released in February 2012 that showed fiscal 2011 “advertising plus other marketing costs” was about 16.40% of sales. That implies 5.04% or $4.090 billion in “other marketing costs” since stated advertising costs were 11.36%. That implies that advertising accounted for 69.25% of advertising plus other marketing costs. Dollar figures calculated on fiscal 2011 revenue and ad costs as restated in year-end June 2012 10-K. (The company said fiscal 2011 marketing spending as a percentage of net sales increased “due to additional marketing investments to support innovation and expansion plans.”) 2010: Estimated $12.255 billion. Estimated figure based on year-end June 2012 10-K stating that fiscal 2011 “marketing spending as a percentage of net sales increased 60 basis points,” or 0.60 percentage points, which implies that fiscal 2010 “advertising plus other marketing costs” was about 15.80% of sales. That implies 4.87% or $3.780 billion in “other marketing costs” since stated advertising costs were 10.93%. That implies that advertising accounted for 69.16% of advertising plus other marketing costs. Dollar figures calculated on fiscal 2010 revenue and ad costs as restated in year-end June 2012 10-K. (P&G said fiscal 2010 marketing spending as a percentage of net sales rose “as additional marketing investments, primarily to increase media impressions, and the impact of reduced spending in the fourth quarter of 2009 were partially offset by media rate savings.”) 2009: Estimated $10.918 billion. Estimated figure based on chart P&G released in February 2012 that showed fiscal 2009 “advertising plus other marketing costs” was, by Ad Age Datacenter interpretation, about 14.50% of sales. That implies 4.60% or $3.465 billion in “other marketing costs” since stated advertising costs were 9.90%. That implies that advertising accounted for 68.26% of advertising plus other marketing costs. Dollar figures calculated on fiscal 2009 revenue and ad costs as restated in year-end June 2012 10-K. (P&G said fiscal 2009 marketing spending as a percentage of net sales fell “for the total company and for each reportable segment mainly due to media rate reductions, foreign exchange and reductions in the amount of media purchased primarily in the fourth fiscal quarter,” the quarter ended June 30, 2009, which also marked the end of the U.S. Great Recession [December 2007 through June 2009].) 2008: Estimated $11.950 billion. Estimated figure based on chart P&G released in February 2012 that showed fiscal 2008 “advertising plus other marketing costs” was, by Ad Age Datacenter interpretation, about 15.38% of sales. That implies 4.53% or $3.524 billion in “other marketing costs” since stated advertising costs were 10.84%. That implies that advertising accounted for 70.51% of advertising plus other marketing costs. Dollar figures calculated on fiscal 2008 revenue and ad costs as restated in year-end June 2012 10-K. 2007: Estimated $10.890 billion. Estimated figure based on chart P&G released in February 2012 that showed fiscal 2007 “advertising plus other marketing costs” was, by Ad Age Datacenter interpretation, about 15.32% of sales. That implies 4.47% or $3.176 billion in “other marketing costs” since stated advertising costs were 10.85%. That implies that advertising accounted for 70.84% of advertising plus other marketing costs. Dollar figures calculated on fiscal 2007 revenue and ad costs as restated in year-end June 2012 10-K. 2006: Estimated $9.947 billion. Estimated figure based on chart P&G released in February 2012 that showed fiscal 2006 “advertising plus other marketing costs” was, by Ad Age Datacenter interpretation, about 15.44% of sales. That implies 4.56% or $2.937 billion in “other marketing costs” since stated advertising costs were 10.88%. That implies that advertising accounted for 70.47% of advertising plus other marketing costs. Dollar figures calculated on fiscal 2006 revenue and ad costs as shown in year-end June 2011 10-K. Links to Ad Age’s advertiser rankings Latest rankings: U.S. The Ad Age Leading National Advertisers 2024 ranking was released Oct. 28, 2024. Ad Age Leading National Advertisers 2024 U.S. ad spending, rankings, analysis and profiles for the biggest marketers Click here Past rankings: U.S. Ad Age Leading National Advertisers 2023 Ad Age Leading National Advertisers 2022 Latest rankings: worldwide The Ad Age World’s Largest Advertisers 2024 ranking was released Dec. 9, 2024. Ad Age World’s Largest Advertisers 2024 Global ad spending, rankings, analysis and profiles for the biggest marketers Click here Past rankings: worldwide Ad Age World’s Largest Advertisers 2023 Ad Age World’s Largest Advertisers 2022 Financial results P&G reported worldwide net sales of $84.0 billion in the year ended June 2024, up 2.5% from $82.0 billion in fiscal 2023. About half (48.2%) of sales came from the U.S. in fiscal 2024. See more: P&G’s financial results Read P&G’s annual filing Deals and strategic moves Acquisitions P&G in the year ended June 2024 spent just $21 million on acquisitions. P&G’s 10-K for year ended June 2023 said “acquisition activity used cash of $765 million in 2023, primarily related to a Beauty acquisition.” Acquisitions included Mielle Organics, a U.S. hair care brand targeting Black women. P&G’s 10-K for year ended June 2022 said “acquisition activity used cash of $1.4 billion in 2022, primarily related to Beauty acquisitions of Farmacy Beauty, Ouai and Tula.” P&G in January 2022 bought Tula Skincare, a premium skin care marketer based in New York and founded in 2014. Tula markets probiotic, superfoods-based skin care products. The company in December 2021 bought Ouai, a hair care and personal care brand founded by celebrity hairstylist Jen Atkins. P&G in November 2021 bought Farmacy Beauty, a skin care brand introduced in 2015 and based in New York. P&G’s 10-K for the year ended June 2021 said “acquisition activity used cash of $34 million in 2021, primarily related to a minor Health Care acquisition.” P&G in April 2021 bought Voost, an Australian marketer of effervescent supplements. Voost was founded in 2013. P&G and Billie, a subscription-based, direct-to-consumer brand of women’s shaving supplies and body care products, in January 2021 terminated a deal (announced in January 2020) for P&G to buy Billie. The move came after the Federal Trade Commission in December 2020 sued to block the acquisition, alleging that P&G, marketer of the Gillette and Venus wet-shave brands as well as electric razor brand Braun, would “eliminate growing competition that benefits consumers” if the deal went through. In a statement, P&G and Billie said: “After due consideration, we have mutually agreed that it is in both companies’ best interests not to engage in a prolonged legal challenge, but instead to terminate our agreement and refocus our resources on other business priorities.” P&G’s 10-K for the year ended June 2020 said “acquisition activity used cash of $58 million in 2020, primarily related to final contractual payments from the prior year acquisition of Merck OTC along with a minor Baby Care acquisition.” P&G’s 10-K for the year ended June 2019 said “acquisition activity used cash of $3.9 billion in 2019, primarily related to the Merck OTC acquisition.” The company in February 2019 bought This is L., a marketer of feminine-care products made with organic cotton, for an undisclosed price. Selected other acquisitions: P&G in October 2005 acquired Gillette Co., marketer of personal care products and Duracell batteries, for $53.4 billion in stock. Worldwide sales for Gillette in its most recent pre-acquisition year (the year ended Dec. 31, 2004) were $10.5 billion. Divestitures P&G in the year ended June 2017 completed a multi-year plan (begun in calendar 2014) to streamline its product portfolio by divesting, discontinuing or consolidating about 100 non-strategic brands, allowing the company to focus on a portfolio of about 65 key brands. Divestitures included Duracell batteries, Iams pet food and 43 beauty brands including CoverGirl. Coty: P&G in October 2016 completed a deal with Coty to divest P&G’s beauty products business (salon professional, hair color, cosmetics, fragrances, selected hair-styling brands) into Coty. Under the deal, P&G divested four categories (hair care and color; retail hair color; cosmetics; fine fragrance) including 41 beauty brands (including CoverGirl, Clairol and Wella Professional). Brands included in the transaction were Wella Professionals (and its sub-brands), Sebastian Professional, Clairol Professional, Sassoon Professional, Nioxin, SP (System Professional), Koleston, Soft Color, Color Charm, Wellaton, Natural Instincts, Nice & Easy, VS Salonist, VS ProSeries Color, Londa/Kadus, Miss Clairol, L’image, Bellady, Blondor, Welloxon, Shockwaves, New Wave, Design, Silvikrin, Wellaflex, Forte, Wella Styling, Wella Trend, Balsam Color, Hugo Boss, Gucci, Lacoste, Bruno Banani, Escada, Gabriela Sabatini, James Bond 007, Mexx, Stella McCartney, Alexander McQueen, Max Factor and CoverGirl. Coty in November 2020 sold a majority stake in its professional and retail hair business to buyout firm KKR. The deal included the Wella, Clairol, OPI and GHD brands. Duracell: P&G in February 2016 sold Duracell to Berkshire Hathaway. Pet food: P&G exited the pet-food business in calendar 2014, selling the bulk of the business (including North America and Latin America operations) to Mars Inc. Mars paid $2.9 billion cash to buy billion-dollar (sales) brand Iams and two other brands, Eukanuba and Natura in those markets, adding them to a Mars pet-food portfolio that already included billion-dollar brands Pedigree, Whiskas, Banfield and Royal Canin. Selected other divestitures: P&G in May 2012 sold its Pringles snack business to Kellogg Co. for $2.7 billion cash. P&G in November 2008 sold its Folgers coffee business to J.M. Smucker Co. Management and employees Jon Moeller is chairman, president and CEO of Procter & Gamble. He became chairman on July 1, 2022 and president-CEO on Nov. 1, 2021, succeeding David Taylor. Moeller, who was born in Chicago and educated at Cornell University, joined P&G in 1988. His previous roles at the company included chief operating officer and chief financial officer. See more: P&G management See more: P&G careers Stock P&G trades on the New York Stock Exchange. Ticker: PG History Procter & Gamble was incorporated in Ohio in 1905, building on a business founded in 1837 by William Procter and James Gamble. The company celebrated its 175th anniversary in 2012. See more: P&G’s history Ad Age Leading National Advertisers 2024 U.S. ad spending, rankings, analysis and profiles for the biggest marketers Click here

Procter & Gamble—ad spending, facts and profile

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