A top marketer is scaling back portions of its advertising program as part of broader cutbacks that will be implemented over the next three years. MediaPost reports that Unilever told analysts and investors last week that it will produce 30% fewer ads going forward and will trim its global creative agency roster by 50%.
The Dutch-British consumer goods company is behind a vast array of brands, including Best Foods, Lipton, Dove, Ben & Jerry’s and Axe.
Unilever CFO Graeme Pitkethly announced the moves, noting that the company employs 3,000 agencies around the world and indicating that the number will be reduced by half.
“Pitkethly told the investment community that the firm produces more ads than ever make it to air. The strategy going forward will be to show more of the better ads that make the cut for longer periods of time,” MediaPost reports. “The plan, he said, ‘won’t compromise the impact’ of the company’s overall advertising and marketing strategy.”
Unilever is estimated to spend more than $7 billion annually on advertising worldwide.
The report notes that the ad-related cuts are part of a broader initiative by Unilever targeting $4.3 billion to $6.4 billion in cost reductions over the next three years.