• Ad Age, Monday, February 4, 2008 11:15 AM

Procter & Gamble, Colgate-Palmolive, Kraft Foods and Kellogg 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.

P&G and Colgate last week reported stronger-than-expected organic sales growth, at least in the U.S., along with strong earnings growth. Both said private-label market shares were flat to down in their categories.

On the other hand, Kraft and Kellogg--also trying to hold down costs as they boost marketing spending--both reported declining net earnings growth last quarter, despite strong revenue growth driven largely by price increases Still, they, too, were bullish about advertising. Kellogg has increased ad spending to $1.1 billion, or about 9% of sales for the year. Kraft vows to increase marketing spending to between 8% and 9% of total sales by 2009.

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