In an August 25th Wall Street Journal online article Renee Schultes reminds readers that “cutting advertising and promotion spending to protect margins is a natural reaction in tough times. But consumer-staples groups should think twice: Regaining sales momentum can take many years to correct” and that “sales momentum is costly to rebuild.”

Schultes also refers to “Deutsche Bank's analysis of 30 large U.S. and European groups over 15 years” and how it “suggests consumer-staples companies that increase advertising spending deliver sales growth 30% faster than peers.”

She concludes noting that “in a weak consumer environment, where the fight for market share will be intense, companies should resist the temptation of going for the easy option of sharp cuts to advertising budgets.” Read the entire article here.