• Ad Age, Monday, December 6, 2010 11:13 PM

For years Colgate-Palmolive Co. defied odds as it held or gained share in the U.S. despite being massively outspent by bigger rivals, particularly Procter & Gamble Co. But in a growing number of categories -- including toothpaste, deodorant, body wash, dish soap and pet food -- Colgate has been losing share. First, its rivals are upping spending and second, Latin American immigration to the U.S., where it has market-share leadership, has almost ground to a halt in recent years.

Goldman Sachs analyst Andrew Sawyer projected in a recent report that Colgate will need to boost ad spending by $150 million to $200 million next year. Colgate spent $165 million on U.S. measured media last year, according to Kantar Media, $93 million of it on toothpaste, $12 million on Softsoap and $11 million on Palmolive dish soap. But it was outspent by others in each category, often by several multiples.

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