COMPUTERS AND PHONES LEAD '96 AD GROWTH

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Computers

and phones lead '96

ad growth

[lincolnshire, ill.] Advertising growth is hitting double digits in the fields of soft drinks; communications and computer-communications equip-ment; auto and home supply retailers; dolls and toys; and lawn and garden equipment, among others, according to the 20th annual Advertising Ratios & Budgets survey from Schonfeld & Associates.

Showing 20% or greater boosts are computers and software; agricultural chemicals; catalogs/mail order; radio/telephone communication; shoe retailing; and ice cream/frozen novelties.

The Schonfeld study also forecasts 1997 ad spending and growth, and indicates that next year promises to be a strong one for advertising.

FOOD COMPANIES, RESTAURANTS UP

Large, diversified food companies are expected to spend almost $20 billion in 1997, up 3.8%. The 127 restaurant chains in the Schonfeld study will average 7.9% ad growth and spend $2.6 billion.

The pharmaceutical industry will increase spending 6.1% next year, much faster than inflation, and reach $8.8 billion.

Hospital and medical advertising will continue to surge. General medical and surgical hospitals will increase spending 15.6%; ad spending by specialty outpatient facilities will jump 20.5%.

Advertising growth by telecommunication service companies will be 11.3%, with estimated spending of $11.4 billion. Gains for the next few years will be driven by the introduction of new services.

For many phone companies, data communications is the fastest-growing business-such as the explosive growth of the Internet.

HIGH-TECH BOOM

Next year will be an important one for computer and other high-tech products as well. Ad growth for prepackaged software will rise 6.7%; semiconductors and related devices will be up 22.2%; and computer communication equipment will grow 17.6%.

Advertising by retailers will vary significantly by type. Department stores will spend $4.5 billion in 1997, down 7.8%. Advertising by direct mail/catalog houses will surge to $2.7 billion, up 20.2%.

Copies of the 219-page study are available at $325 from Schonfeld & Associates, 1 Sherwood Drive, Lincolnshire, Ill., 60069; phone (847) 948-8080.M

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