Commentary

Ad Spending in 2006 Forcasted Up, Topped by Automotive at $33.5 Billion

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

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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.

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