P&G, L’Oréal, and More Increase Ad Spend as Inflation Falls

August 3, 2023

Major advertisers, including Procter & Gamble (P&G), L’Oréal, Unilever, Kimberly-Clark Corp., Nestlé, and Hershey Co., are increasing their ad spend after preparing for a recession that did not occur. P&G reported an 8% increase in organic sales growth after raising its ad spend by $453 million last quarter. The growth in ad spend and improved bottom lines are correlated with the U.S. economy’s positive trajectory and a dip in inflation rates, encouraging advertisers to be more flexible in their spending and focus on performance-driven campaigns.

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