FOR IMMEDIATE RELEASE
June 25, 2009
Contact: Carol J. Greenhut
Schonfeld & Associates, Inc.
800 - 205 - 0030
CGreenhut@saiBooks.com
MODEST SPENDING ON ADVERTISING IN 2010
Libertyville, IL. Schonfeld & Associates, Inc. has just released the 33rd edition of its annual study,
Advertising Ratios & Budgets. The new research report covers more than 5,000 individual companies, and
over 340 industry sectors are covered.
Besides advertising-to-sales ratios, the study forecasts ad spending in 2010 and ad growth for each
company and industry so users of the study can monitor competition and plan their own ad spending. Overall,
2010 promises to be a year of modestly increasing advertising spending. Although some traditional
advertising media are seeing a decline, the variety of newer advertising channels has resulted in increased total
marketing activity. In more challenging economic times, companies look to advertising to protect their market
share.
Large, diversified food companies are expected to spend nearly $43.4 billion in 2010, up over 14%
from 2009's $38.4 billion. The 73 separate restaurant chains in the Schonfeld study will average 6.8% ad
growth and spend a total of over $4.2 billion in 2010.
The pharmaceutical industry will increase spending 5.9% in 2010 and exceed $25 billion. The direct to
consumer marketing of drugs by manufacturers continues to contribute to the strength in pharmaceutical
advertising. The industries of biotech and electromedical apparatus both show a growth in advertising spending
of over 6%.
Advertising growth by telecommunication service companies will exceed 9% in 2010 with estimated
spending of over $30 billion worldwide. Ad spending for wireless communications services will continue
increasing, up 8.1% to $14.2 billion. The widespread use of the Internet translates into continuing demand for
high speed access and equipment. Spending by manufacturers of cell phones and PDAs is expected to increase
4 % to $8.2 billion.
2010 will show continued demand for computer related products although the pace of industry wide
growth has slowed. PC manufacturers, led by Hewlett-Packard, will increase ad spending by over 3% while
advertising growth for software will rise 13.6%. Advertising for semiconductors and related devices will be
down by 2.5 percent in 2010, while spending by computer communication equipment manufacturers will
increase by over 8 percent.
Retail department stores, such as J.C. Penney and Macy’s, will spend $ 4.4 billion in 2010, up 3.2%
from 2009. Variety stores, such as Target and Wal-Mart, will increase their ad budgets 4.1% for a total of $7.7
billion. Advertising by catalog houses will continue to increase, reflecting Internet competition, to $2.3 billion.
Online stores Ebay and Amazon are growing their advertising budgets by 13 percent and 17 percent
respectively. A web presence, along with spending on advertising to drive traffic to the site, has become a part
of every retailer's marketing and advertising efforts. Search engine Google is planning to spend $386 million,
an increase of 20%, while Yahoo will spend $210 million, up 5 percent. Priceline.com plans to spend $449
million, an increase of over 20%.
In 2010, the top ad spender continues to be Nestle with an estimated budget of $28.4 billion, an
increase of 19 percent. Over 700 major foreign-based firms are covered by this year's study, including such
firms as Unilever and Sony.
The diversified food products industry is expected to be the top spending industry with an outlay of
$43.3 billion, a 14% increase, outspending the automotive industry. However the automotive industry will see
4.8% growth in ad spending to $35.8 billion, while sales increase a modest 2.9%. Daimler, Fiat, Ford, General
Motors, Honda, Toyota, Volkswagen and Volvo will each spend over $1 billion.
Advertising Ratios & Budgets is widely used for strategic planning by ad agencies, monitoring
competitors, planning ad budgets, and identifying new business prospects. It is also used for selling advertising
space and time, and for planning by publishers and broadcasters in developing new media vehicles. Budgets
are grouped to show all competitors within an industry. Data from the study are also available in database
format. Additional information is provided within the database to allow for analysis by corporate location or
NAICS code.
Advertising Ratios & Budgets is compiled from a variety of sources such as 10-K Reports. Since
reporting may vary from company to company, careful use of the findings are advised. Caution is urged when:
(1) financial events such as mergers, acquisitions, and divestitures may distort spending patterns; (2) private
ownership of very large companies in specific industries may mean that some advertisers are omitted; (3)
multi-industry companies are reported only in their primary industry based on sales of their dominant line of
business.
Copies of the 200-page study are available at $ 395 or $ 495 with database. Please contact Schonfeld
& Associates, Inc., 1931 Lynn Circle, Libertyville, Illinois 60048, 800-205-0030 or on the web at
www.saiBooks.com.