Key sectors reduce US outlay

07 April 2009

NEW YORK: Household and personal care brands in the US made more significant cuts to their advertising budgets than the norm in 2008, reducing their outlay by 8.8% compared with a market average of 5%, reports Sanford C. Bernstein, the wealth management firm.

While many brands reduced their outlay in a recession, it has been argued that such a strategy can have negative long-term consequences on a brand's share of market, as well as a short-term impact on its share of voice within its category.

Based on an analysis of figures from TNS Media Intelligence, Bernstein reported that eight US-headquartered household and personal care companies made reductions of almost 9% in their expenditure in response to the downturn.

As previously reported, Goldman Sachs also found that companies including Procter & Gamble and Kimberley-Clark decreased their advertising expenditure by 14% in Q4 2008, despite increasing their outlay in sectors under threat from own-label.

However, TNS data also suggest that personal care brands cut their US adspend by 3.6% overall last year, meaning that major international brands, such as L'Oréal, may have increased their spending and share of voice while their American rivals cut back.

Data sourced from; additional content by WARC staff