HOW MUCH DOES IT COST TO BE THE NO.1 ADVERTISER OUTSIDE THE U.S.? PROCTER & GAMBLE SPENT $2.6 BILLION IN 1995. GLOBAL MARKETERS

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The world's top 50 marketers outside the U.S. made last year a boom year by increasing ad spending an average 19.3%

Only German household products company Henkel spent less-a drop of 1.2%-in 1995. The previous year, 14 of the top 50 global marketers slashed ad spending while in recession-plagued 1993, fully half cut their budgets.

Part of the gain is due to exchange rates as the dollar weakened in 1995 against major currencies.

$27.6 BILLION SPENT

Advertising Age International's 10th annual ranking of the top 50 showed they spent $27.6 billion outside the U.S.

These same 50 spent $20.6 billion in the U.S. market, for a total of $48.2 billion worldwide. Marketers are ranked by non-U.S. ad spending to eliminate U.S. companies whose spending is primarily in the domestic market.

BIG IBM JUMP

The biggest leap was by IBM Corp., whose non-U.S. spending soared by 79.5% to $276 million as the company rolled out a massive worldwide ad campaign after moving its entire account to Ogilvy & Mather Worldwide. IBM shot up from No. 48 in the previous year to No. 35.

At the top of the chart, the world's two biggest personal care giants, Procter & Gamble Co. and Unilever, spent $2.6 billion and $2.4 billion outside the U.S., respectively, almost twice as much as the No. 3 player, Nestle, at $1.4 billion.

With spending from the U.S. added, Procter & Gamble dwarfed its biggest competitor with a $5.3 billion worldwide ad expenditure compared to $3.2 billion for Unilever.

CURRENCY BOOST

Several factors contributed to the top 50 marketers' strong 1995 growth. In four of the world's top 10 advertising markets, strengthening local currency boosted ad spending when translated into U.S. dollars.

10% GAIN

In Japan, Germany and France, local currencies rose by about 10% against the dollar; in the U.K., it was 4.2%.

Also, as monitoring services improve in many countries, more data on ad spending is being collected.

60 COUNTRIES RANKED

The current ranking charts spending in 60 countries, up from 34 countries when the ranking was instituted in 1987.

Geopolitical changes have produced some of the growth. As markets in Eastern European have opened up, Ad Age International has added Bulgaria, the Czech Republic, Hungary, Poland, Romania, Slovakia and this year for the first time, Russia, to the list of nations where advertising spending is tracked.

China and Vietnam are other recent newcomers to the list.

The monitoring of advertising is increasing but still poses a challenge in developing countries.

EASTERN EUROPE GROWING

One Eastern Europe source, when asked if he had a longer ranking of marketers for his country, simply replied, "Why would I?"

For 13 of the top 50 marketers, non-U.S. ad spending jumped by more than 30% in 1995.

Six of those 13 were carmakers-with Toyota, Volvo and Nissan boosting their non-U.S. ad budgets by 57.3%, 45.6% and 42%, respectively. As a category, carmakers have more entries in the top 50 and spend more money than any other product or service.

16 AUTOMAKERS ON LIST

The automaker category contains 16 car companies, spending $8.9 billion outside the U.S. Ten companies populated the personal care category, which accounted for $8.1 billion of the total spent outside the U.S.

Asia produced the greatest number of top 50 marketers with 19, followed closely by Europe with 18 top advertisers and the U.S. at 13.

Apart from the U.S., the world's largest ad market, the top marketers spend more than half of their non-U.S. money, or $15.8 billion, in Europe. Asia attracted $9 billion from this group. Latin America drew less than $2 billion.

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