Top 10 Leading National Advertisers
Google, Amazon Each Pump $2 Billion Into Global Ads And Promotion
|2012 Rank||2011||Advertiser||Headquarters||2012 U.S. Ad Spending||2011||% Change|
|1||1||Procter & Gamble Co.||Cincinnati||$4,829.7||$4,903.2||-1.5|
|2||3||General Motors Co.||Detroit||3,067.4||2,815.7||8.9|
|5||5||Verizon Communications||New York||2,381.0||2,523.0||-5.6|
|6||7||Ford Motor Co.||Dearborn, Mich.||2,276.9||2,141.3||6.3|
|8||6||JPMorgan Chase & Co.||New York||2,086.9||2,351.8||-11.3|
|9||8||American Express Co.||New York||2,070.9||2,125.3||-2.6|
|10||16||Toyota Motor Corp.||Toyota City, Japan||2,008.1||1,749.4||14.8|
|Source: Ad Age’s 100 Leading National Advertisers. Ranked by total U.S. advertising spending in 2012. Dollars in millions.|
Spending by the nation’s biggest advertisers looks a lot like the U.S. economy as a whole: good, but far from great, and getting a nice lift from the technology sector and a resurgent auto industry.
The 100 Leading National Advertisers spent an estimated $104.5 billion on U.S. advertising last year, up just 2.8% from 2011, according to Ad Age DataCenter’s analysis. That represented the lowest growth rate since the ad recovery began in 2010 and left total spending still shy of prerecession levels.
Caution is the watchword as marketers — forever under pressure to deliver results to Wall Street — scrounge to save money where they can. For many, that means shifting to digital, trimming non-media portions of the ad budget or simply holding the line on ad spending.
Still, some industries have loads of market share up for grabs, leading to big investments by major players.
At the top of that list is technology, which scored the highest ad-spending growth among LNA categories, rising 13.6%, driven by fierce competition in the consumer-electronics space.
Samsung Electronics was in a galaxy all its own as it continued to battle Apple in mobile devices. It boosted 2012 U.S. ad spending 57.6%, the fastest growth among the 100 LNA, according to Ad Age estimates.
Amazon, part of the retail category, delivered the second-highest growth, with estimated U.S. spending up 46.6% as it promoted its Kindle offerings and its image as the one-stop shop for, well, everything. That surge pushed the e-commerce leader’s worldwide ad and promotion spending to $2 billion in 2012, making it the second internet company to reach that threshold (Google hit it in 2011).
Automotive logged the second-highest growth rate among LNA categories as spending jumped 12.9%. The uptick was fueled by big increases from Japanese and South Korean automakers such as Toyota, Honda, Nissan and Kia. Ad spending mirrored sales, with U.S. light-vehicle sales rising 13.4% to 14.5 million vehicles in 2012, according to Automotive News Data Center.
The pharmaceutical category was a different story, as the patent cliff led LNA firms to cut U.S. ad spending 9.3% last year, the biggest decline among categories. Bristol-Myers Squibb (down 25.7%) and Pfizer (down 21.0%) had the biggest drops among the Top 100.
Those companies slashed spending as blockbuster drugs — Plavix, co-marketed by Bristol-Myers and Sanofi, and Lipitor, marketed by Pfizer — faced generic competition after patent protections ran out. Sales of Lipitor — the nation’s and world’s No. 1 selling prescription drug in 2011 — plunged to $3.9 billion in 2012 from $9.6 billion a year earlier. Pfizer cut its worldwide ad spending to $2.9 billion from $3.7 billion over that time.