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This question has been closed, and points have been awarded.
Consumer Marketing Averages
Posted By: sean* on 7/14/2004 3:13 PM (CST) 50 Points
What is the average % of sales that company's spend on consumer advertising?

Posted by: SteveByrneBranding Accepted Answer
7/14/2004 3:24 PM (CST)
Sean, this is a simple Google search. You might want to expand your question with some detail so the KHE'rs can weigh in with more informed responses. Also, don't forget the search box to the upper right.

A/S Ratios and norms
"A look at the top 100 U. S. advertisers and their A/S ratios is pretty revealing. The largest advertiser, G. M. runs with a 2.9% A/S ratio or put another way, the ad budget is nearly 3% of the company's sales. The number 100 advertiser is Mazda and they run at 5.4%. The average of all 100 advertisers is 3.6%
Looking more closely, Wal-Mart spends the least amount on advertising, relative to sales, 0.3% and American Housing Corp spends the most, 51%. Among the top 100 brands, 41 spend less than 5% on their A/S ratios, 27 spend 5-10%, 14 spend 10-15%, 10 spend over 15%, while 8 are not measured. So to those consumers who complain about the price of the products they buy being so high due to advertising, there is really not too much to the argument."
Source: http://www.salesvantage.com/news/advertising/justifying_budgets.shtml
 
Posted by: JBtron Member Response
7/14/2004 3:57 PM (CST)
Sean,

Give Steven the points. His response is SPOT ON, as they say "across the pond..."

Hope this helps!

Best,

::JBtron
 
Posted by: The Consultant ™* Member Response
7/16/2004 11:13 AM (CST)
Hi Sean,

Check out this link. It has the info you need:

"GENERAL MARKETING AND ADVERTISING TRENDS"

http://www.outreach.psu.edu/omr/reports/adtrends.pdf

I hope this helps.
 
Posted by: ajay Accepted Answer
7/28/2004 1:05 AM (CST)
As a thumb rule, 10-15% for launch, 5-10% for a growing market & then it settles between 2-5%
 
Posted by: jose04 Accepted Answer
8/7/2004 4:23 AM (CST)
Sean

It will be apt to address the industry experience before making choices on the A/S ratio. The life cycle stage of the product is another factor. The definition of the universe (customers), historical data and the other tool kits to decision making should help. In a global market, the PEST factors (political, economic, social and technological factors) play a significant role. Ultimately it all boils down to the marketers judgement to make the right A/S ratio choice.

Happy decision making!!
 
Posted by: Val (Moderator)* Moderator Response
8/8/2004 11:40 AM (CST)
Hello all. I am closing this question, since its more than 2 weeks old. We do this to make sure members' contributions are rewarded in a timely manner and to improve the visibility of newer questions. Thanks, so much, for participating!

Val (Moderator)
 


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