VIRGINIA BEACH, VIRGINIA, UNITED STATES, June 5, 2024 /EINPresswire.com/ — Schonfeld & Associates, Inc. has released the latest edition of its annual study, Advertising Ratios & Budgets. The new research report covers ad spending in 2023 by more than 2,500 individual publicly traded companies within 315 industries.
For each company, the study presents information as reported on the 10-K annual report to the U.S. Securities & Exchange Commission. Data includes fiscal 2023 advertising spending, revenue, and gross profit, along with advertising-to-sales and advertising-to-gross-profit ratios for 2023 and 2022 as well as annual growth rates for ad spending and sales. For each industry, 2023 and 2022 revenue and advertising spending are reported along with advertising-to-sales and advertising-to-gross-profit ratios for 2023 along with growth rates in ad spending and sales. Each industry requires individualized analysis as consumer response to marketing varies by industry.
Advertising by catalog and mail-order houses, the top spending industry, increased to over $49 billion. The industry saw an increase of over 7% in revenue. Online powerhouse Amazon continued to grow its advertising budget by 5 percent. Online commerce is an integral part of every retailer’s operating strategy. Variety stores, led by Walmart, with both online and bricks-and-mortar presences, increased their ad budgets by over 3% to $6.3 billion in 2023, with revenues increased by over 4%.
Technology companies providing services to social media platforms, led by Alphabet and Meta, spent over $16 billion in 2023 a decrease of 6% but saw revenue grow by more than 9%.
Companies in the pharmaceutical industry reported ad spending exceeding $15 billion in 2023, up over 21% from 2022. While there is mixed support for pharmaceutical ad spending, it is now the most common form of health information encountered by the public. Pharmaceutical companies are embracing the use of social media, congruent with the continued trend in other industries.
Transportation Services, such as Expedia, reflected the continuing return to pre-Covid travel with an increase in ad spending of over 7% while revenues grew over 19%. Travel-related industries also saw significant revenue gains in 2023 as well as increased advertising spending.
Telecomm service providers increased their ad budgets by over 7% to $6.8 billion. Growth in advertising by cellular phone service companies was up over 8% in 2023 with spending of over $2.6 billion worldwide.
Large, diversified food companies spent a total of over $3 billion in 2023 on advertising, showing a robust 23% increase over 2022. The beverage industry spent just under $11 billion, a 15% increase, and saw revenues up 6%. Beer companies spent over $1.3 billion, an 8% increase. The 46 separate restaurant chains in the Schonfeld study spent a total of $4.5 billion in 2023, an increase of over 14% from 2022, and saw a 10% increase in sales.
Advertising Ratios & Budgets are 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. Information is grouped to show all competitors within an industry. Excel data files from the study are also available. Additional information is provided within the data files to allow for further analysis.
Copies of the 155-page study are available in PDF format for $395. Data files from Advertising Ratios & Budgets are also available for all companies and industries in Excel format. Five years of revenue, ad spending, gross profit, and ratio information is provided within the datafiles to allow for additional analysis. The 2024 edition of the PDF study along with Excel datafiles is $495. Contact Schonfeld & Associates, Inc., 1932 Terramar Lane, Virginia Beach, VA 23456. Call for more information or to place an order: 800-205-0030 or visit www.saiBooks.com
This year, for the first time, a supplement is available to Advertising Ratios & Budgets containing benchmark ad-to-sales ratios by industry based on corporate tax return data sourced from the IRS. This data source broadens the scope of the study to include private firms. The cost is $25 when purchased along with the full report.
Carol J Greenhut
Schonfeld & Associates, Inc.
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