US★Top 200 US Advertisers: 2014 Spending Growth Slows

Ad Age announced the "Top 200 Advertisers" in the U.S. market for 2014. P&G retained the top spot for the second consecutive year, with advertising spending in 2014 at $4.61 billion, a 4.2% decrease from the previous year. AT&T and General Motors followed.

Among the top 200 companies, 119 increased spending year-on-year, 79 decreased spending, and 2 remained unchanged. The average expenditure was $689 million. However, a significant gap exists: the average for the top 100 companies was $1.1 billion, while the average for those ranked 101-200 was $279 million. For example, while P&G, ranked first, spent an estimated $4.6 billion, Liberty Tripadvisor, ranked 200th, spent $180 million. On the other hand, 38 companies spent over $1 billion.

By industry, spending increased in 12 out of 15 sectors. The top growth rates were seen in Travel (up 14.5% year-on-year), Apparel (up 9.8%), Entertainment/Media (up 5.2%), and Pharmaceuticals (up 5.0%). Conversely, industries that saw advertising spending decline included food (down 4.1%), technology (down 3.1%), and personal care (down 2.2%).

While the total amount reached a record high of $137.8 billion, the growth rate was the lowest since the recovery trend began in 2010 following the Lehman Shock. However, this does not mean companies held back on advertising; rather, advertising spending was compressed as the focus shifted from major media (traditional media and internet display advertising) to other media that are difficult to measure (including various digital advertising such as paid search, online video, and social media, as well as promotions, experiential marketing, and direct marketing). The share of spending on other media within the total advertising expenditure of 200 companies stood at 47.8%, up from 45.8% in 2013, indicating an expanding trend.

The breakdown of the 200 companies' spending on major media was: TV 68.5%, Internet display ads 7.2%, and other print media, radio, and outdoor advertising combined 24.3%. Total spending on major media decreased by 1.8% year-on-year. Banner ads saw the sharpest decline, falling 13.3%. Meanwhile, advertising spending on other media grew 6.5%. Net of these changes, the total advertising expenditure of the 200 companies in 2014 increased only 2.0%.