COMPUTER AD GROWTH TO JUMP: 42.9% RISE SEEN FOR DATA PROCESSING, PROGRAMMING

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[lincolnshire, ill.] The industries with the largest ad growth rates this year include canned fruit, vegetables, preserves, jams and jellies; optical instruments and lenses; radio stations; and fire, marine and casualty insurance, according to the 21st annual Advertising Ratios & Budgets survey from Schonfeld & Associates.

At the top of the list are computer programming and data processing, with an estimated 1994 ad growth rate that should hit 42.9%; and auto dealers and gas stations, with a 35.5% increase.

'98 SHOULD BE STRONG

The study also says 1998 should be a strong year for advertising overall. Large, diversified food companies are expected to spend $21.1 billion in 1998, up 8.4%. The 154 restaurant chains in the Schonfeld study will average 7.8% ad growth and spend $2.9 billion.

Healthcare-related industries also will boost expenditures.

The pharmaceutical industry will increase spending 11.9% in 1998, to $12.9 billion, as marketers strengthen the consumer franchises of established drugs that have patents expiring in the next few years.

In addition, hospital and medical advertising will continue to surge. General medical and surgical hospitals will increase spending 19.7%; ad spending by specialty outpatient facilities will jump 22.6%.

COMPUTER SPENDING STRONG

Next year will be an important year for computer products.

Advertising growth for prepackaged software will rise 18%, mainly from increased marketing for Internet software and services. Semiconductors and related devices will spend 15.1% more in 1998, and computer communication equipment will grow 14.2%.

Advertising growth by telecommunication service companies will be down 2.4% in '98, with estimated spending of $12 billion. However, ad spending for wireless communications services will be up 31.7%, to $1.1 billion.

Advertising by retailers will vary significantly by the type of store. Department stores will spend $5.1 billion in 1998, down 4.2%. Advertising by catalog houses will surge to $3.1 billion, up 18.6%, and in-home shopping will continue strong.

This year's report covers more than 8,000 companies and 400 industry sectors.

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