Company's boost advertising budgets

Makers of basic household goods are boosting their advertising budgets for 2010 in hopes of getting the U.S. consumers to start spending. Although retail spending is on the rise, consumers are not spending those dollars on every day household items. Consumers are more likely to eat out or buy new shoes than buy basic products. Brand manufacturers are developing new improved products to entice consumers to spend. However, they need to get the word out and the way to do this is increased advertising to sales ratio. Currently, consumer product manufacturers expect to spend 9.7% of sales on advertising for 2010, up from 8.6% in 2009. P & G plans to increase advertising 20% in 2010. Not only are the companies spending more in advertising they are coming out with record new innovative products and improvements to products. The manufactures have to overcome the sharp rise in private label and store brands which is becoming a buying pattern for consumers. This additional advertising spending will test the theory that boosting the brand's share of advertising beyond current market share will increase its market share. These manufactures have their work cut out for them trying to convince the consumers that their products have more value than cheaper store brands.