The study by Corporate Branding pitted the ad support for pharmaceuticals, autos, computers, financial services and electronic marketers against CoreBrand Power, the consultancy's proprietary consumer research about the strength of a particular brand.
AVERAGE OF $10.8 MIL FOR ADS
Corporate Branding estimated drug marketers it surveyed spend an average of $10.8 million annually on advertising, which equals $300,000 for every point of CoreBrand Power. Conversely, autos and parts/accessories marketers spend an average of $143 million annually, at a cost of $4.5 million per CoreBrand point.
The findings don't, however, mean that automakers are wasting their money, said Jim Gregory, founder and CEO of Corporate Branding and author of the study. That's because car marketers have to spend more money to sell high-ticket items to an already knowledgeable audience.
Pharmaceutical companies, on the other hand, end up having to spend less on advertising because they get free coverage from the media when new products are introduced, Mr. Gregory said.
OTHER ARENAS STUDIED
The other three categories surveyed:
* Commercial banks and diversified financial services average $12.6 million on ads each year, at a cost of $500,000 per CoreBrand point.
* Computer, software and office equipment companies averaged $43.8 million, or $1.5 million per point.
* Electronic and electrical equipment companies averaged $89.9 million, or $3.2 million per point.
The study is the second in a series of branding research contracted by Business