Top 100 Global Advertisers See World of Opportunity
CHICAGO (AdAge.com) -- The United States accounts for 5% of the world's population, 20% of global GDP and 34% of total worldwide advertising, making the U.S. by far the largest ad market. But if you want to reach the remaining 95% of consumers, what do you do? Go global.
The Top 100 global advertisers invested 61% of their measured-media budgets outside the U.S. last year, according to Ad Age's Global Marketers, a study covering 96 countries, territories and regions.
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They are betting big on one country: China. It accounts for 20% of the world's population, 13% of global GDP and -- for now -- just 5% of total worldwide advertising. But ad spending is growing fast. Publicis Groupe's ZenithOptimedia forecasts that China in 2011 will displace Germany as the world's third-largest ad market, coming in behind the U.S. and Japan.
On the Global 100 roster, 10 firms -- including Procter & Gamble Co., L'Or�al, Colgate-Palmolive Co., Coca-Cola Co. and PepsiCo -- allocated more than 10% of 2009 measured-media spending to China.
One global advertiser stands out in China: Fast-food seller Yum Brands (parent of KFC) last year allocated 27% of measured spending to that market and generated 31% of its worldwide revenue from mainland China.
Among the 46 U.S.-based marketers on the Global 100 roster, 12 firms do more than half their ad spending abroad, largely tracking with where they generate revenue and expect to find growth.