Advertising's Share Of Company Revenues

GroupM’s analysis of aggregate data for the major advertising categories finds not much has changed, with advertising's share of company revenues remaining on average at 2.4% over the past few years. GroupM Business Intelligence's Brian Wieser points out, in the July 10, 2021 "Global Marketing Monitor," that while the analysis appears to be stable, there is much activity taking place with newly minted publicly traded companies, which tend to allocate higher levels of their revenues to advertising. Weiser adds, "Towards those ends, media company growth in ad expense during 2020 was 28.8%, similar to the 30.9% increase in revenue these companies posted.  On the other hand, the stand-out data point is that amount this group, the media company allocated 26.8% of revenue to advertising expenses last year, with a range of between 3.6% and 103% (meaning more money went to advertising than was generated in revenue)."