2022 Ad-to-Sales Ratio Benchmarks by Company and Industry

2022 Ad to Sales Ratios, %
VIRGINIA BEACH, Va. - Virginir -- Schonfeld & Associates, Inc. has released the latest annual edition of Advertising Ratios & Budgets. The report covers over 2,500 individual companies within 320 industries that spent on advertising in 2022. Over 350 non-U.S. headquartered firms are included.

For each company, the study reports advertising spending, revenue and gross profit for 2022, along with advertising-to-sales and advertising-to-gross-profit ratios for 2022 and 2021 as well as annual growth rates for ad spending and sales. For each industry, 2022 and 2021 revenue and advertising spending are reported along with advertising-to-sales and advertising-to-gross-profit ratios for 2022 along with growth rates in ad spending and sales. Users of the study can monitor competition and evaluate marketing strategies.

Advertising by catalog and mail-order houses, the top spending industry, increased to over $48 billion and the industry saw an increase of 7% in revenue. Online powerhouse Amazon continued to grow its advertising budget by just under 30 percent. Variety stores, led by Wal-Mart, increased their ad budgets over 4% for a total of over $6 billion in 2022, with revenues increased by over 6%.

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Technology companies providing services to social media platforms, led by Alphabet and Meta, spent over $18 billion in 2022 an increase of over 5% and saw revenue gains of over 7%.

The pharmaceutical industry reported ad spending exceeding $17 billion in 2022, up 3% from 2021.

Cable and pay TV services, led by Comcast, increased their ad spending by 22% to $16.2 billion. In the entertainment industry, on demand binge watching has become the popular option.

Large, diversified food companies spent a total of almost $2.5 billion in 2022, showing very little change from 2021.  The beverage industry spent $9.5 billion, a 2% increase, and revenues were up 9%. The 48 separate restaurant chains in the Schonfeld study spent a total of $3.9 billion in 2022, an increase of over 12% from 2021 and saw a 14% increase in sales.

Advertising Ratios & Budgets is widely used for strategic planning by ad agencies, monitoring competitors, planning ad budgets, and identifying new business prospects. Information is grouped to show all competitors within an industry.

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The 156-page PDF report is available for $ 395. Excel data files are also available for all companies and industries. Five years of revenue, ad spending, gross profit and ratio information is provided within the datafiles to allow for additional analysis. The 2023 edition of the PDF study along with Excel datafiles is $ 495. Contact Schonfeld & Associates, Inc., 1932 Terramar Lane, Virginia Beach, VA 23456. Call for more information: 800-205-0030 or visit the company's web site at www.saiBooks.com under the Area of Expertise: Advertising Spending.

Carol J. Greenhut

Source: Schonfeld & Associates, Inc.
Filed Under: Business

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