Procter & Gamble’s (P&G) Chief Financial Officer, Andre Schulten, discussed the company’s efforts to use artificial intelligence (AI) to enhance its advertising strategy and achieve “superior brand communication” at the Consumer Analyst Group of New York (CAGNY) conference. P&G is utilizing AI to generate advertising ideas, test ads, and automate media buying, which is increasing speed and reducing costs. The company’s AI studios use decades of P&G brand ad research data to test ads and optimize them in just a few days, a process that previously took weeks.
Schulten highlighted the company’s “Great Idea Generator”, which is transforming the idea creation process by enabling concept development in minutes rather than weeks. The tool takes P&G concept data, consumer insights, and external trends analysis to create advertising concepts, increasing the number of concepts created tenfold and improving quality.
P&G is also using automated media buying to drive media effectiveness and increase reach with greater precision. The company is reducing its reliance on traditional advertising agencies, instead opting to in-house media operations and ad production. This has resulted in cost savings, improved quality, and reduced ad development and execution time.
Schulten stated that the company is “reinventing” the agency model, shifting from a single key agency to a more flexible model that allows for the selection and hiring of top creative talent, regardless of agency affiliation. This new model enables P&G brands to source the best creative work from anywhere. Overall, P&G’s efforts aim to optimize its advertising spend and achieve “superior brand communication”.