Recession, Eh? P&G, Colgate Boost Ad Bucks†

Thanks to Planned Price Hikes, Package-goods Giants Forced to Keep Pitching to Consumers on Merits of Their Brands

Advertising Age, February 4, 2008 — BATAVIA, Ohio (AdAge.com) — Marketing budgets get cut in a recession, right? Not according to several of today's package-goods leaders.

In a testament to how important advertising has become to their businesses, Procter & Gamble Co., Colgate-Palmolive Co., Kraft Foods and Kellogg Co. all have boosted or at least maintained their marketing budgets, even as they've had to implement cost controls elsewhere. And that trend looks set to continue as these giants are forced to hike prices in response to rising commodities costs — a move that will require them to continue pitching consumers on the merits of their brands.