Procter & Gamble is reporting “improved marketing efficiency” as one of the reasons the company topped quarterly earnings and revenue expectations.

But the focus on efficiency also came with a major hike in overall ad spending.

The maker of Olay, Gillette, Tide, Always and Bounty is reporting Q4 revenue of $20.55 billion USD versus the $19.98 billion USD that was expected by analysts, thanks to price hikes for staples such as Pampers diapers and Crest toothpaste. Profits were $3.38 billion USD, up from $3.05 billion USD, attributable to its strategic focus on a portfolio of daily use product categories, led by an 11% jump in beauty products.

Selling, general and administrative expense (SG&A) as a percentage of sales increased 190 basis points versus the prior year. Looking at ads more specifically, the company increased its ad spending by $453 million USD.

In the company’s earnings call, P&G CEO Jon Moeller, noted that the company has a “line of sight to savings from improved marketing productivity, more efficiency and greater effectiveness, avoiding excess frequency and reducing waste.”

Moeller pointed out that he “just generally believes that the majority of brand choice is made in a retail environment” and that the company is “simplifying” its SKU portfolio as a result.

“A well-timed investment in retail and media in line with merchandising plans on the floor or online can provide superior return on investment,” said P&G CFO Andre Schulten, who noted that P&G is working with retail partners to maximize returns.

Schulten also stated that there are “plenty of opportunities in data sharing, combing transaction data with media data to optimize, and that is a strong reason why retailer-based marketing spending can make sense.”

For fiscal 2024, P&G is forecasting that its revenue will grow 3-4%, lower than analyst expectations of 4.5%.

P&G’s fabric and homecare business, which includes brands such as Febreze, saw volume declines of 2%, while the company’s grooming segment, which includes Gillette, reported its volume was down 1% in the quarter. P&G’s baby, feminine and family care and beauty segments reported flat volume for Q4, while healthcare, which includes Oral-B, saw a global volume drop of 3%.