Firms spend up to 150% more on adverts

Published on Wednesday 9 September 2009 22:08

BRITAIN'S leading grocery brands are trying to spend their way out of recession, new research has shown.

The amount spent on advertising by some of the nation's leading food and drink manufacturers has increased in the past year, despite the economic downturn.

The study reveals Special K is now the most publicised brand in Britain.

Nearly 22 million was spent by Kelloggs on the cereal – famous for its television advertisements featuring women in red swimsuits – in the 12 months to 30 June, an increase of 8 per cent.

The company said the move to bolster the ad budget echoed similar steps taken in the US during the Great Depression.

Kevin Brennan, the firm's marketing director, said: "Despite the recession, Kellogg's marketing spend will total more than 80 million in 2009. We learnt in the 1930s that investing through hard times can give you the biggest win."

Analysts said such brands are taking advantage of a "deflated" advertising market, and are hoping to emerge with a greater market share once the recession is over.

The research, published in The Grocer magazine, found that among the top 100 food and drink advertisers, spending increased by 2.2 per cent, despite the fact the actual cost of advertising had dropped by between 15 per cent and 20 per cent.

The 21.7 million spent on Special K was closely followed by Muller, with 19.2 million spent by the yoghurt maker, an increase of 12.4 per cent. In third place was Coca-Cola, with an ad budget of 15.9 million, a rise of 21 per cent.

The largest increase in ad spending was by Stella Artois, which increased its outlay by 149 per cent to 11.2 million.

Peter Field, a marketing consultant, said: "A recession is the best time to increase spend. All major studies on advertising in economic downturns show the brands that take advantage of a deflated ad market to increase (their] share of voice are the ones to emerge in better shape when the economy picks up."

However, not every manufacturer is following the same strategy. Cadbury's are spending less on advertising, focusing instead on viral internet campaigns such as the drumming gorilla. Daz, Bold, Bird's Eye, and Tropicana have also pared back their marketing budgets.

The spending figures, calculated by analysts Billetts, relate to advertising on television, billboards, the press, and the internet.