T. Rowe Price plans to scale back its advertising spending in the third quarter by $5 million because of a rocky stock market but will ramp it back up in the fourth quarter.
Spending will go from about $21 million in the second quarter to about $16 million in the third, according to Brian Lewbart, a spokesman. The cut is a result of uncertain financial markets and the damper that puts on investor demand, according to Lewbart.
T. Rowe Price has topped ad spending among fund firms for two straight years (www.fundaction.com, 3/10), and appears on track to do the same in 2006.
T. Rowe expects to spend about $94.6 million in 2006, up from the $86 million spent in 2005. Fourth quarter spending is expected to rise to about $29.7 million, up from $28.4 in 2005.