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P&G Launches Major ROI Review

May 19, 2013

Procter & Gamble Co. is the U.S.'s largest ad spenderand now it's embarking on a major review of how it measures the impact of that $5 billion-plus annual outlay.

The move comes only two years after adopting a new system for measuring return on marketing investment and amid investor pressure for the world's biggest advertiser to get more bang for its marketing bucks.

Two years ago, P&G consolidated marketing-mix-modeling efforts with Nielsen and brought on DemandTec, an IBM company that worked with Nielsen to deliver monthly ROI reports supplementing the annual or quarterly analyses the company used in the past. P&G scrapped DemandTec after getting readings that varied widely month to month and sometimes didn't gibe with analyses by Nielsen and others, according to people familiar with the matter. (P&G and Nielsen declined to comment.)

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