NEW YORK (AdAgeChina.com) -- If you want to follow the money in advertising, get a passport and a ticket to China.
The world's biggest marketers are investing ad dollars wherever they can find revenue or potential for growth in a tough global economy -- and increasingly, that's China. The mainland and other major emerging markets like India, Brazil and Russia have become key markets for advertisers, according to Ad Age's Global Marketers study, which covers more than 90 countries, territories and regions from Algeria to Zambia.
Eleven of the 44 U.S.-based companies among the Global 100 rely so heavily on international sales that they do more than half their ad spending abroad, and 39 of the Global 100 had measured-media spending in China last year.
Five of them already invest more than 10% of their budgets in China -- Yum Brands, Pernod Ricard, Avon Products, Colgate-Palmolive Co. and Procter & Gamble Co., the world's biggest advertiser since overtaking Unilever in 2002.
For fast-food seller Yum Brands, China represents 20% of the company's worldwide measured spending of $1.41 billion. The parent of KFC and Pizza Hut generated 31% of 2008 revenue from its China division, where sales surged 36%.
P&G, China's biggest advertiser at about $1.1 billion, accounts for more than one in four dollars, 27%, of the Global 100's China measured-media spending. Overall, China represents 3.4% of total ad spending for the Global 100, slightly below ZenithOptimedia's estimate that China accounted for 4.1% of 2008 worldwide ad spending.
Ad Age's 23rd annual Global Marketers study is accessible as a new database at AdAge.com/globalmarketers09. The database includes top spenders in each country as well as a link to Ad Age's annual Agency Dots compilation, a detailed analysis of agency network assignments of global marketers.
Top 20 marketers in China by media spending
Marketer; 2008 measured-media spending in China (US$ in millions); China ad spending as % of worldwide spending
1. Yum Brands; $289.5; 20.5%
2. Pernod Ricard; $50.2; 14.9%
3. Avon Products; $49.6; 14.9%
4. Colgate-Palmolive Co.; $145.2; 13.8%
5. Procter & Gamble Co.; $1,079.1; 11.1%
6. LVMH; $54.7; 8.7%
7. Unilever; $487.0; 8.5%
8. L'Oreal; $333.3; 8.3%
9. PepsiCo; $105.3; 7.6%
10. Nokia Corp.; $32.9; 7.4%
Source: Ad Age Global 100, Ad Age DataCenter
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