"Increasing ad budgets pays off for marketers."
While some cut back, others gain
ground by spending more.
USA Today, Money section B, Tuesday, August 7, 2001
By Theresa Howard-USA Today
During the ad industry's worst downturn in a decade, some advertisers actually are spending more.
And worrying less.
Never mind that industry forecasts say ad spending will shrink at least 3% this year from the $243.7
billion reported in 2000. Several major marketers are boosting ad spending during this downturn
and seeing a boost in sales-and profit-as a result.
Coca-Cola>>
Coke added more than $350 million to its worldwide marketing budget this year. Investors chided
the company for the one-time boost, but the increase is paying off. Second quarter volume in North
America was up 3% and net income was up 22%. "Coca-Cola emerged at the end of World War II
as a global icon," spokesman Rob Baskin says. "We could'nt have done that without increaased
marketing during a pretty turbulent time. You can take that idea forward."
Red Lobster>>
The resturant chain's ad budget is up about 5% to $160 million. That helped boost June same-store
sales by 4%. "Despite the downturn, we're not taking any preassure off," says Ken Mills, vice
president of advertising for Red Lobster. "To be category leader, you have to invest in good times and bad."
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