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July 31, 1996|Times Staff and Wire Reports

P & G Changes Ad Reimbursement Policy: Procter & Gamble Co. has decided to pay its advertising agencies for research costs and, to offset that, reduce the commission rates it pays on production of commercials to 10% from the current 15%. Elizabeth Moore, a P & G spokeswoman, said the Cincinnati-based company's studies show that the "reimbursement shift" is expected to balance out and that the "overall profitability" of its advertising agencies is not going to change. She said the policy change will be a "financial break-even" for P & G globally and is intended primarily to make the administration of costs easier for the consumer products company. With an ad budget of $3.28 billion in fiscal 1995, P & G is the world's largest advertiser.

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