Ad Age LNA Fact Pack Reveals Digital Is a Juggernaut
The 2017 Ad Age Fact Pack on the Leading National Advertisers is out. As usual, there are some fascinating findings in how brands are advertising their products, as well as how much and where they’re spending their dollars to do it.
What has become readily apparent, spending on digital advertising is a virtual runaway train with no signs of slowing down. Internet advertising is forecast to rise to $69.2 billion by the end of 2017, a 14.6% increase from last year. It would be the first time digital advertising edged out TV, which is projected to come in a close second at $68.4 billion.
Internet advertising has been on a steep rise for the past several years, and Zenith projects the category to own a 41.2% share of all ad dollars by 2019. For some context, digital had a market share of only 3.8% in 2000. And that rise had come at the expense of some established categories that have seen sharp drops (Newspapers) or slow, steady declines (Radio and Magazines).
“Alexa, who saw a spike in advertising?”
Overall, advertising spending is projected to grow by 3.7% to $198 billion in 2017. The biggest increase in terms of dollars came from Amazon, which made a huge investment in its U.S. advertising with a 30-percent, $602 million increase over 2016 to $2.6 billion. From a percentage standpoint, Bacardi was the leader of the pack, bumping up their ad spending by 74% from the previous year. Who else is a little envious and wouldn’t mind seeing that in their budget next year?
One of the biggest eye-grabbers was from Tesla, the electric carmaker headquartered just down the road from us here in San Francisco. So how much do you think the largest U.S. auto company, in terms of market cap at more than $60 billion, spent on measured media in 2016?
Try, zero. That’s right, nothing. Zip, nada, zilch. Tesla didn’t buy any media. The company marketed solely through channels like their website and social media, via press coverage and word-of-mouth. Pretty astounding. And keep in mind that the auto industry was the largest advertising sector overall at $15.2 billion, and the auto category leaders were GM ($3.8 billion), Ford ($2.3 billion) and Toyota ($2 billion).
Another shocker in the auto industry came from Hyundai, who made a major push promoting its Genesis luxury brand. Hyundai spent $6,821 for each Genesis sold in 2016, which was almost triple the next closest competitor — Ford at $2,719 for each Lincoln it sold. Hyundai was obviously a firm believer in the idea of “Go big or go home”.
Big brands dominate Top 10 lists
The Top 10 list of the most advertised brands is a who’s who of recognizable names —Geico, Verizon, Chevrolet, AT&T, Ford, McDonald’s, Apple, Toyota, T-Mobile and Samsung. The interesting thing to note is that 8 of the 10 brands fit into only three categories – auto, telecom and consumer electronics.
When it comes to household products, P&G is the advertising king at $4.3 billion, which is second in overall ad spending only to Comcast which led everybody at $5.6 billion last year. Of the Top 10 most advertised household products brands, P&G holds seven spots including the top 3 (Tide, Downy and Febreze). And of the $1.9 billion spent on advertisements for household products in 2016, P&G alone accounted for almost 44% of the total. Clorox was a distant second at 8.9%. P&G also holds four of the top 10 spots in personal care category. That’s what’s called dominating the space.
What’s undeniable is that brands, large and small, are spending millions (or billions) on advertising each and every year. And with the ad tech industry consistently coming up with new solutions for brands to target and connect better with customers, the pressure on marketing departments to make every dollar count is, well … the struggle is real. Neustar feels your pain.
So if you’re a marketer who’s been struggling to “make your numbers” and need a fresh perspective for your marketing analytics, data onboarding, customer intelligence or DMP, we have a full suite of advanced solutions that just might be the difference-make you’ve been looking for.
To see all the fascinating stats and insights in the Ad Age 2017 Leading National Advertisers Fact Pack, visit here.