Kellogg: Digital ROI Surpasses That of TV

"It's still relatively early in our learning," Mark Baynes, chief marketing officer at the Battle Creek, Mich., company told the Lehman Bros. Back to School Consumer Conference during a discussion on how Kellogg is trying to increase advertising and marketing efficacy. "But analysis of the Special K initiative of the last 18 months showed digital media exceeding that of broadcast ROI."

Kellogg crossed the $1 billion benchmark on ad spending during 2007, and its outlay is set to increase this year. Mr. Baynes said his company spends an additional $300 million on promotional marketing.

Over the past year, Kellogg has been praised for sticking with its advertising spending despite the recession. The company has credited its brand-building efforts with its ability pass some of the heavy commodity-cost increases onto the consumer.

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