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P&G Still the No. 1 Spender on Ads

Nov 25, 2007  •  Post A Comment

The world’s top 100 marketers spent $97.8 billion in global media in 2006, a scant 1.1% increase from 2005, according to Advertising Age’s 21st annual Global Marketers report covering 90 countries. The group increased its spending on measured media by 5.1% in 2005 and by 12.1% in 2004.
Procter & Gamble Co. continued its six-year streak at No. 1, with its $8.52 billion in spending up 4.1%. P&G is so far ahead of the pack that no other marketer is likely to catch up any time soon. However, rivals Unilever at No. 2 and fourth-ranked L’Oreal are growing faster, increasing their spending 8.1% and 12.7%, respectively, last year.
Worldwide growth was pulled down by the U.S., where spending on measured media by the Top 100 marketers fell by 2.2%. Some of the biggest U.S.-based global marketers slashed spending by double digits, with the deepest cuts in the U.S. General Motors Corp.’s spending was down 17.4% worldwide and 24.3% in the U.S., while Johnson & Johnson cut its budget 13.2% worldwide and 19.3% in the U.S.
In the U.S., some of the marketers who grew their media budgets the most were American companies that aren’t part of the global group, such as Verizon and AT&T. (A Top 100 marketer had to report media spending on at least three continents to qualify as “global,” regardless of headquarters.) And spending outside the U.S. increased because of the falling U.S. dollar.
Automotive and entertainment/media, two of the three biggest ad categories, showed drops of 0.4% and 5%, respectively, to $22.2 billion and $9.54 billion. The strongest growth was in the personal-care category, where the nine marketers boosted spending 6.2% to $19.53 billion.
In a mixed year, 43 of the Top 100 spent less on measured media in 2006 than in 2005, and 57 spent more. In general, food, drug and electronics marketers and retailers spent more on measured media in 2006, while soft drink, financial services and alcoholic beverages marketers cut spending.
Apple rocketed into the Top 100 for the first time, with media spending that jumped 85.2% to $351 million, landing the company in the No. 83 spot; it came in at No. 118 in 2005. The other two marketers new to the ranking are European companies who just missed the cutoff last year: Dutch financial services group ING and France’s Pernod Ricard.
The Top 100 spent $46.02 billion, or 47.1% of the group’s global total, in the U.S. in 2006. In part, that reflects that the U.S. is the home market for 46 of the 100 top global marketers. Europe attracted 31.8% of the group’s spending and Asia drew 15.3%.

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