Who Has Money to Burn

By Published on .

NEW YORK (AdAge.com) -- With the TV upfront market around the corner, here's a look at which categories are expected to be strong spenders and which ones aren't.

Package goods: up Procter & Gamble Co., Unilever, Clorox Co., Kimberly-Clark Corp. and Reckitt-Benckiser will have already factored in economic pressures that hit last year. Companies in this sector have had success making price increases of 2005 stick, boding well for price hikes in April and June, which should relieve pressure on media budgets.

Fast food: up Players have been aggressively using TV to position. Wendy's is repositioning, McDonald's business is healthy, while Burger King is planning an initial public offering that will require media support.

Retail: up Wal-Mart's continued upscale push will likely be backed with increased ad spending while Target's push to expand its food aisle offerings could lead to more dollars against its already heavy TV rotation.

Tourism: up United Airlines is emerging from bankruptcy and is expected to spend, while Hilton Hotels is planning a big brand push in 2006. Starwood Hotels breaks a rebranding campaign today for Sheraton and Westin.

Technology: up Apple has products such as a big screen video iPod in the works while Microsoft will be out pushing tablet P.C.s. Retailers will continue to push widescreen TVs.

Entertainment: slightly up The Weinstein Co. is a new player in the market with a tradition of spending big on movie marketing. While DVD sales are slowing, Hollywood could start pushing movie products on new platforms.

Pharmaceutical: flat No new spending, as category looks to find its way with new guidelines from Pharmaceutical and Research Manufacturers of America.

Automotive: flat The outlook for one of the biggest spending categories is mixed. While foreign auto brands are doing well, struggling domestic brands are expected to continue to operate under tough conditions.

In this article:
Most Popular