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[lincolnshire, ill.] The largest ad growth rates in the 22nd annual Advertising Ratios & Budgets from Schonfeld & Associates are for auto dealers and gas stations; radio stations; hospital and medical services plans; and equipment rental and leasing.

At the top is the equipment rental and leasing services industry, with an estimated 1999 ad growth rate of 59.8%. Auto dealers and gas stations was close behind, with a 48.4% increase.

This year's survey covers more than 5,900 individual companies and more than 400 industry sectors.

The survey says 1999 promises to be a strong year for advertising.

"The strong stock market has continued to encourage new-product investment and increased marketing activity," the study says.

Large, diversified food companies are expected to spend almost $16 billion in 1999, up 3.8%. The 145 restaurant chains in the Schonfeld study will average 7.3% ad growth and spend a total of $3.5 billion in '99.


The pharmaceutical industry will increase spending 8.9%, and reach the $13.3 billion mark, according to the survey. Because many drugs have patents expiring in the next few years, companies are investing heavily to ensure over-the-counter versions have a strong consumer franchise before generic drug makers move into key markets. Direct-to-consumer marketing of drugs has contributed to the significant increase in Rx advertising.

Hospital and medical advertising will continue to surge. General medical and surgical hospitals will increase spending 19%. Ad spending by specialty outpatient facilities will jump 20.9%.

Ad growth by telecommunications companies will be up 11.9% in '99, with estimated spending of nearly $15 billion.

Ad spending for wireless communications will continue to increase, up 24.2% to $1.4 billion.

PC marketers will increase ad spending by 12.3%. Ad growth for software will rise 14.2%. Much of this growth will be due to increased marketing for Internet software and services.

Retail advertising reflects continuing consumer confidence in the economy. Department stores will spend $6.1 billion in 1999, up 6.2%. Advertising by direct-mail catalog houses will hit $2.7 billion, up 9.2%.

Copies of the 210-page study are available from Schonfeld & Associates (see chart at left).

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