Spending in a tough year

Once again a list of the top 100 US advertisers has been published, this time for 2001. They range from a high of nearly $3.4 billion (#1: General Motors), to a mere $285 million (#100: Dillards). All of the top 25 spent more than $1 billion during 2001, which was by all accounts a rough year. Half of the 100 increased their ad expenditures, while the other half decreased them. KIA had the largest increase at +71%, while GE had the sharpest decline at -49%.

The rich get richer, unevenly

We looked at US revenue divided by ad spend and found that the top 10 made $21.61 per ad dollar spent. Smaller companies ranked 91-100 made a bit more, $23.91, thus proving that the very rich don't always get very richer. Return on investment seemed to be more closely associated with individual companies and the categories they were in, rather than their size.

The average company among the top 100 returned $29 in revenue for every dollar spent in advertising. Wal-Mart was the most successful with a high of nearly $318, while Estee Lauder returned the least at $3.67. By category, the financial sector returned $64.47, retail stores next at $57.86. Fast Food chains and soft drinks returned the least at from $8.00 - $8.50.

Automotives were among the biggest spenders as a group and they averaged a fair return at $33, with considerable stability from company to company. Ford returned $45 per ad dollar and GM $39. The computer and software category however, yielded some wild swings in return, from a high of $72 for Dell to a low of $17 for Microsoft. True to form for the Dotgone year.

The biggest spenders in each medium were as follows…

Network TV: General Motors
Spot TV: Dalmler Chrysler
Syndication: P&G
Cable: AOL/Time Warner
Radio: SBC Communications
Magazines:: P&G
Newspapers: Federated Department Stores
Outdoor: Anheuser Busch
Internet: Ebay


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© Media Directors Ink : August 2002

 

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