Worldwide ad spending:
Total worldwide advertising spending figures shown in the Ad Age World’s Largest Advertisers report are Coca-Cola’s stated worldwide “advertising expenses” (including media and production).
Coca-Cola disclosed worldwide advertising expenses of $5.010 billion in 2023, an all-time high. That was up 16.0% from $4.319 billion in 2022.
U.S. ad spending:
Total U.S. advertising spending shown in the Ad Age Leading National Advertisers report is an Ad Age Datacenter estimate.
Ad Age Datacenter changed its spending model for Coca-Cola’s total U.S. ad spending effective with the June 2023 Leading National Advertisers report.
Promotional and marketing programs:
The company said in its 10-K for calendar 2023:
“In addition to conducting our own independent advertising and marketing activities, we may provide promotional and marketing support and/or funds to our bottlers.
“In most cases, we do this on a discretionary basis under the terms of commitment letters or agreements, even though we are not obligated to do so under the terms of the bottler’s agreements between our company and the bottlers.
“Also, on a discretionary basis in most cases, our company may develop and introduce new products, packages and equipment to assist the bottlers.
“Likewise, in many instances, we provide promotional and marketing support and/or funds and/or dispensing equipment and repair services to fountain and bottle/can retailers, typically pursuant to marketing agreements.”
Coca-Cola’s 10-K for calendar 2023 did not break out the dollar amount for promotional and marketing programs. Previous annual filings disclosed the following aggregate amount provided by the company to bottlers, resellers and other customers, principally for participation in promotional and marketing programs:
2022: $4.8 billion
2021: $4.7 billion
2020: $4.1 billion
2019: $4.4 billion
2018: $4.3 billion
2017: $6.2 billion
2016: $6.6 billion
2015: $6.8 billion
2014: $7.0 billion
2013: $6.9 billion
2012: $6.1 billion
2011: $5.8 billion
2010: $5.0 billion
2009: $4.5 billion
Selling, general and administrative expenses:
The company said in its 10-K for calendar 2023:
“Selling, general and administrative expenses increased $1,092 million, or 8%, in 2023. This increase was primarily due to higher advertising and other operating expenses, partially offset by decreases in selling and distribution expenses and stock-based compensation expense. The increase in other operating expenses was primarily due to higher other marketing expenses and increased charitable donations, as well as higher annual incentive expense and other employee benefit costs.
“The decrease in selling and distribution expenses was primarily a result of the refranchising of our bottling operations in Vietnam and Cambodia. The decrease in stock-based compensation expense was primarily due to the cumulative expense that was recorded in 2022 resulting from the impact a more favorable financial outlook had on the outstanding nonvested performance share units. In 2023, foreign currency exchange rate fluctuations decreased selling, general and administrative expenses by 3%.”
The company said in its 10-K for calendar 2022:
“Selling, general and administrative expenses increased $736 million, or 6%, in 2022. This increase was primarily due to increased marketing spending, higher selling and distribution expenses, and higher annual incentive and stock-based compensation expense. The increase in selling and distribution expenses was due to the continued recovery from the COVID-19 pandemic.
“The increase in stock-based compensation expense was primarily due to our strong financial performance in 2022 and a more favorable outlook of our future financial performance, which resulted in higher payout assumptions as compared to 2021. In 2022, foreign currency exchange rate fluctuations decreased selling, general and administrative expenses by 6%.”
The company said in its 10-K for calendar 2021:
“Selling, general and administrative expenses increased $2,413 million, or 25%, in 2021. This increase was primarily due to higher annual incentive and stock-based compensation expense, increased charitable donations and increased marketing spending, which was reduced in 2020 as a result of uncertainties associated with the COVID-19 pandemic.
“The increase in annual incentive and stock-based compensation expense was primarily due to improved financial performance in 2021 and a more favorable outlook of our future financial performance, which resulted in higher payout assumptions as compared to 2020. In 2021, foreign currency exchange rate fluctuations increased selling, general and administrative expenses by 2%.”
The company said in its 10-K for calendar 2020:
“Selling, general and administrative expenses decreased $2,372 million, or 20%, in 2020. This decrease was primarily due to effective cost management and a reduction in marketing spending as a result of uncertainties related to the impact of the COVID-19 pandemic, the impact of savings from our productivity initiatives, the impact of a reduction in stock-based compensation expense resulting from a change in estimated payout, and a foreign currency exchange rate impact of 1%.”
