Blog #4_P&G Will Cut Another $400 Million in Agency, Production Costs

http://adage.com/article/cmo-strategy/p-g-cut-400-million-agency-produc/312488/

As two of the leading firms in global ad spending are making significant cuts, it can be expected that other large firms will follow suit in order to decrease costs. Firms are not only reducing their total ad spend, but also the number of agencies they will work with. P&G is looking at open sourcing, which means leveraging existing agencies as well as other agencies for project-based assignments. This can not only improve fixed costs but also facilitate new ideas that lead to improved products.

While firms are looking for ways to cut costs, the need for marketing and brand management still exists. Firms are looking for more efficient ways to spend. Targeted digital ads leveraging mediums like social media or voice are ways for agencies to grow and stay relevant. 

This trend demonstrates how marketing / advertising must be agile and adapt the way retail / manufacturers have been, mirroring their clients. The burden of adapting to the changing market is not only on the product but also those selling it.