...the overall economy in the first quarter is improving because inventory supplies are going down -- a normal positive sign of good economic activity. We could see a 3% to 4% growth rate.

—CNBC anchor Ron Insana


 


Reach Creative Partners Group at
310-378-8043


May 8, 2002

2000 advertising-to-sales ratios for the largest ad spending industries
How does your company stack up?

A question that often arises is, “How much should I be spending on advertising?” While every company has its own unique requirements, the table below will give you an indication of ad spending in your industry. This is the latest compilation based on year 2000.

Industry
SIC number
Ad dollars as percent of sales
Ad dollars as percent of margin
Annual ad growth rate (%)
Accident & health insurance 6321 1.0 10.1 15.5
Agricultural chemicals 2870 1.2 3.0 6.8
Agriculture production-crops 100 5.0 16.3 -60.5
Air courier services 4513 1.2 9.5 8.2
Air transport, scheduled 4512 1.2 8.0 2.4
Air-cond,heating,refrig eq 3585 1.5 5.6 7.3
Apparel & other finished pds 2300 3.6 10.1 3.3
Apparel and accessory stores 5600 3.8 8.9 10.8
Auto dealers, gas stations 5500 1.3 8.3 20.8
Auto rent & lease,no drivers 7510 2.6 6.4 6.5
Blankbooks,binders,bookbind 2780 6.6 12.4 4.4
Bldg matl,hardwr,garden-retl 5200 2.5 6.4 15.9
Books: pubg, pubg & printing 2731 11.0 20.5 6.5
Btld & can soft drinks,water 2086 5.3 11.1 8.3
Business services, nec 7389 4.8 17.1 40.9
Catalog, mail-order houses 5961 9.1 34.5 14.5
Chemicals & allied products 2800 1.5 3.6 -2.0
Cmp integrated sys design 7373 0.7 2.0 9.2
Cmp programming,data process 7370 6.5 16.7 6.4
Commercial printing 2750 4.0 14.6 12.2
Communications equip, nec 3669 1.3 3.4 3.2
Communications services, nec 4899 4.2 11.1 29.4
Computer & office equipment 3570 1.5 4.9 0.6
Computer communication equip 3576 3.1 5.3 14.1
Computer peripheral eq, nec 3577 3.7 8.4 6.4
Computer storage devices 3572 1.7 5.0 5.6
Computers & software-whsl 5045 0.2 3.2 11.8
Construction machinery & eq 3531 0.6 1.9 3.5
Cutlery, handtools,gen hrdwr 3420 12.0 21.5 3.7
Dental equipment & supplies 3843 1.5 2.7 11.9
Drawng,insulatng nonfer wire 3357 0.3 0.9 9.7
Elec meas & test instruments 3825 2.1 3.9 15.1
Electr, oth elec eq, ex cmp 3600 2.5 7.8 -2.9
Electric housewares and fans 3634 4.8 14.0 17.1
Electrical indl apparatus 3620 5.2 14.4 -0.4
Electromedical apparatus 3845 0.9 1.4 15.9
Electronic components, nec 3679 1.4 4.3 7.0
Electronic computers 3571 1.6 5.4 13.2
Electronic connectors 3678 0.5 1.3 20.0
Fabricated rubber pds, nec 3060 3.1 9.6 8.1
Farm machinery and equipment 3523 2.5 9.8 0.2
Food and kindred products 2000 11.0 25.2 3.3
General indl mach & eq, nec 3569 1.4 2.9 2.5
Grain mill products 2040 7.2 13.9 1.2
Hardwr, plumb, heat eq-whsl 5070 4.4 28.2 10.5
Health services 8000 4.6 15.5 19.3
Heating eq, plumbing fixture 3430 7.0 14.8 4.5
Home furniture & equip store 5700 2.8 7.0 9.9
Hospital & medical svc plans 6324 0.2 1.2 -8.3
Indl inorganic chemicals 2810 1.8 4.5 0.6
Indl trucks,tractors,trailrs 3537 1.7 7.8 8.4
Lab analytical instruments 3826 1.7 2.9 0.6
Leather and leather products 3100 17.5 29.9 7.0
Lumber & oth bldg matl-retl 5211 0.5 1.8 8.1
Medicinal chems,botanicl pds 2833 9.8 27.4 10.3
Metal forgings and stampings 3460 1.8 5.5 24.8
Metalworking machinery & eq 3540 4.3 11.2 10.9
Misc business services 7380 1.6 2.5 15.6
Misc chemical products 2890 9.6 23.2 10.6
Misc durable goods-whsl 5090 5.1 20.2 25.2
Misc elec machy,eq,supplies 3690 7.2 19.6 49.4
Misc equip rental & leasing 7350 1.2 2.3 35.4
Misc fabricated metal prods 3490 0.6 2.0 1.2
Misc fabricated textile pds 2390 1.4 6.9 24.8
Misc food preps, kindred pds 2090 9.9 17.2 3.1
Misc furniture and fixtures 2590 6.3 19.9 50.7
Misc general mdse stores 5399 6.4 29.6 -10.9
Misc indl, coml, machy & eq 3590 0.9 2.3 3.8
Misc manufacturng industries 3990 3.0 6.3 16.8
Motor veh suply,new pts-whsl 5013 0.4 1.7 6.8
Motor vehicles & car bodies 3711 2.7 10.1 6.6
Motors and generators 3621 0.8 2.9 7.1
Ophthalmic goods 3851 7.4 11.4 12.6
Ordnance and accessories 3480 2.1 7.1 -8.5
Ortho,prosth,surg appl,suply 3842 2.3 4.1 5.6
Paints, varnishes, lacquers 2851 3.7 8.8 -1.4
Paper & paper products-whsl 5110 2.0 7.7 20.7
Paper mills 2621 2.1 4.7 1.2
Perfume,cosmetic,toilet prep 2844 12.8 20.3 4.0
Petroleum refining 2911 0.8 4.8 2.3
Phone comm ex radiotelephone 4813 2.4 5.2 7.1
Photographic equip & supply 3861 3.4 6.7 -0.7
Plastics products, nec 3089 1.8 4.9 10.2
Prefab wood bldgs,components 2452 1.7 6.0 7.2
Prepackaged software 7372 3.7 5.3 12.3
Prof & coml eq & supply-whsl 5040 1.5 4.6 4.8
Radio,tv,cons electr stores 5731 3.7 14.8 7.3
Radiotelephone communication 4812 5.0 9.9 14.1
Real estate agents & mgrs 6531 2.9 12.5 22.4
Real estate dealers 6532 4.0 6.1 15.0
Real estate investment trust 6798 2.9 8.4 28.2
Rubber and plastics footwear 3021 12.0 32.7 3.1
Scrap & waste materials-whsl 5093 4.7 58.1 22.2
Semiconductor,related device 3674 2.2 4.8 8.2
Srch,det,nav,guid,aero sys 3812 2.6 10.4 11.0
Structural clay products 3250 2.4 5.0 5.0
Tele & telegraph apparatus 3661 1.1 2.5 9.0
Tires and inner tubes 3011 1.7 6.1 0.9
Transportation services 4700 6.2 21.9 57.9
Women's clothing stores 5621 5.6 13.9 8.5
Wood hshld furn, ex upholsrd 2511 3.2 10.8 11.3
X-ray & related apparatus 3844 2.6 7.3 3.7
Notes: Advertising Ratios & Budgets covers over 320 industries. The industries listed here were selected as the industries with the largest dollar volume of advertising based on estimated 2000 spending. For information about other industries, contact Schonfeld & Associates, Inc. Legend: SIC no. = Standard Industrial Classification number; ad $ as % of sales = advertising / net sales; ad $ as % of margin = advertising expense/(net sales-cost of goods sold); annual ad growth rate % = average annual compound growth rate in ad spending; Source: Advertising Ratios & Budgets, 24th Edition, 210 pages. Published by Schonfeld & Associates, Inc., 2830 Blackthorn Road, Riverwoods, IL 60015. Phone 800-205-0030. Price $345 US. Also available on disk. For more information visit www.saiBooks.com
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