Kraft, Kellogg Beat Analyst Expectations†

Despite Quarterly Earnings Tumble, Marketers Stick With Upping Ad Spending

Advertising Age, April 30, 2008 — In the face of rising commodity costs and cautious consumers, most brand-name food manufacturers are continuing to increase marketing investment. Kraft and Kellogg, which both reported earnings this morning, credited advertising and marketing with the strength of the companies' respective brand portfolios. Both marketers saw profits drop and simultaneously beat analyst expectations.

Recession Hits: What It Means for Ad Biz†

Ten Industry Leaders Offer Their Takes on the Approaching Downturn

Advertising Age, January 14, 2008 — Merrill Lynch last week became the first major U.S. investment bank to declare the U.S. economy in recession. Two days later, Goldman Sachs jumped in, predicting that the economy would enter recession during 2008, if it wasn't there already.

The thinking at both banks is that a recent spike in unemployment is evidence that the credit crunch roiling the housing and financial sectors is beginning to infect the larger economy. So in order to find out what that means for the marketing world, Ad Age asked leading industry executives what they think a recession means for the business in 2008.

Their reply: It might not hurt in the short-term, but if things don't tick up, gird yourself for a tough 2009.

Big Brewers Gut Ad Spend, Sell More Beer†

Exclusive: Miller and A-B Move More Money to Unmeasured Media

Advertising Age, September 24, 2007 — Spend less on measured media, reap more sales.

That's appears to be the lesson from the big brewers, long among the steadiest and most stalwart users of traditional mass media, who are now pouring their ad dollars elsewhere at a froth-inducing rate. According to TNS Media Intelligence, top brewers cut measured media spending a whopping 24%, about $131 million, during the first six months of 2007, following a 12% cut during 2006. At the same time, the brewers insist they haven't cut spending at all — and in many cases have increased it.