In the world as a whole digital accounted for 30.6 of PG’s revenues in 2011 and CEO Maurice Levy says he expects a combination of digital and revenue from emerging markets to account for three quarters of the company’s revenue in the “pretty near future.”
PG is clearly showing the benefits of investing some $2.5bn in digital agencies Digitas, Razorfish and Rosetta, all of which are strongest in the US market. Digital, which now accounts for about a quarter of the ad market in the US and UK, less in other markets, is ” a magnet for clients,” Levy told the Financial Times.
Levy was reporting a 5.7 per cent rise in PG revenues to €5.8bn in 2011 with, importantly, operating margins inching ahead from 15.8 per cent to 16 per cent, no mean achievement in a tough market. Digital also helps in this regard, staff by and large are cheaper than the purveyors of traditional advertising.
PG recently lost the giant $3bn General Motors global media account to Aegis-owned Carat but Levy says this will only hit revenues by 0.5 per cent in 2012.