Companies are having trouble adequately stocking their products due to shortages of labor, cargo containers, raw materials and other key manufacturing components. Because of this, marketers are unsure whether it's wise to spend money advertising products that consumers may not be able to find, The Wall Street Journal reported.
"It's not wise to drive demand when shelves are bare," Susan Cantor, CEO of branding firm Sterling Brands, told the newspaper Oct. 30.
Hershey and household goods manufacturers Kimberly-Clark and Church & Dwight — responsible for brands such as Kleenex, Huggies, Arm & Hammer and OxiClean — reduced their advertising and marketing spending in the third quarter because of the supply chain crisis. Executives from the companies said it didn't make sense for them to attract consumers to products they weren't sure they could provide.
Media executives told the newspaper some digital publishers are planning for ad spending to decrease by at least 5 percent in the fourth quarter compared to previous projections.
Advertising spending is expected to return to normal when the supply chain issues are resolved next year, according to the report.