Ad Spending in 2006 Forcasted Up, Topped by Automotive at $33.5 Billion
The recent release of the 29th annual "Advertising Ratios & Budgets" study by Schonfeld & Associates lists forecasted 2005 advertising-to-sales ratios, ad spending in 2005 and 2006 and ad growth for each of more than 5,000 companies in over 300 industries. A few of the industries covered include:
- Large, diversified food companies, expected to spend $28.3 billion in 2006, up 8.1 percent in ad growth
- The pharmaceutical industry will increase spending over 10 percent in 2006 and exceed $21 billion
- The industries of biotech and electromedical apparatus show a growth in advertising spending of over 10 percent
- Advertising growth by telecommunication service companies will be 5.9 percent in 2006 with estimated spending of over $22.2 billion worldwide
- Ad spending for wireless communications services will grow by 9.1 percent to $12.8 billion
- Cable and satellite TV services will spend $2.4 billion in 2006 for advertising, up 15.9 percent
PC manufacturers will increase ad spending by 11.7% while advertising for software will rise only 2.1%. Advertising for semiconductors will be up over 14 percent in 2006, and spending by computer communication equipment manufacturers will increase by over 9 percent.
Retail department stores will spend $4.4 billion in 2006, up slightly from 2005.
Variety stores will increase their ad budgets 5.9 percent for a total of $4.1 billion.
Advertising by direct mail catalog houses will increase to $1.3 billion.
The automotive industry is expected to be the top spending industry with an outlay of $33.5 billion, a 7.6 percent increase.
Use this link for more information about the complete report.