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Kraft, Kellogg Boost Ad Spending

  • Ad Age, Thursday, January 31, 2008 10:45 AM
Although many marketers look to chop ad budgets during tough economic times, Kraft Foods and Kellogg Co. have both vowed to boost ad outlays despite a squeeze on their bottom lines. According to Kellogg chief executive David MacKay, much of his company's fourth-quarter loss was stemmed by increased ad spending, which hit $1.1 billion, or about 9% of sales last year.

And when things like point-of-sale promotions are factored in, the company spent about 12% of its total $11.8 billion in sales on advertising. Kellogg says it made "double-digit" spending increase last year, on top of the $765 million it forked over in 2006.

At Kraft, where fourth-quarter profit slipped 6%, CEO Irene Rosenfeld is promising to bump up marketing spending to between 8% and 9% of total sales by 2009 vs. the 7% it spent last year.



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