P&G wants to renegotiate media contracts

Their sales are flat or down, so Procter & Gamble is looking for a cost savings by renegotiating some of its media contracts.

The media is in no position to fight back, as P&G well knows:

"This media environment is a big 'O' opportunity for us, because we're the biggest advertiser in a lot of these countries, and we just go in and tear up the contract," Mr. Lafley said. "Whole industries have walked away [from media advertising]. So everything is getting renegotiated, and we want to be ahead of the curve."

The article notes that P&G's media spending has decreased by double-digit numbers the past two quarters, but I wonder if much of that decline is offset by in-store spending.