Full Year 1997 Ad Spending Up 9.7%
24 June 1998
Full Year 1997 Ad Spending Up 9.7% GM Leads in Corp & Auto Spending Third Year
Spot & Network TV Spending Lags Behind Cable
NEW YORK, June 24 -- Ad spending by the nation's Top 25
Leading Advertisers in all media for 1997 increased by 9.7% to $73.2 billion
as compared to $66.7 billion in 1996. This information was released today by
Competitive Media Reporting (CMR), the nation's leader in advertising
intelligence. Within the services categories Outdoor advertising showed the
greatest increase with 32.07% growth and Cable Television rose 22.27%.
Interestingly, Network Television and Spot Sales showed a markedly slower
growth with increases of only 5.42% and 3.61%.
For the third straight year, General Motors again outspent all other
corporate advertisers at $2.2 billion with a 30.1% increase over 1996. GM
also led the automotive parent corporations spending almost double what
second-ranked Chrysler spent.
Among automotive brands, Nissan Altima's advertising expenditures
ballooned to 281.7% going from $29 million in 1996 to over $110 million in
1997 to secure third place. However, Honda Accord led all automotive brands
in spending with $136 million.
McDonald's was again the top advertised brand at $578.3 million -- despite
spending 3.3% less than last year. Burger King showed a gain of 17.3%,
maintaining second place in this category. Circuit City ($400.1 million)
jumped to third place outspending fourth ranked Home Depot $188.7 million.
Home Depot's spending represented an increase of 47.4% -- more than any other
of the top five brands in 1997.
Cholesterol and allergy drugs secured the Top Five OTC positions in the
direct-to-consumer prescription drug category. Surprisingly, the new
cholesterol medication, Pravachol took over the number one slot held by
Claritin Allergy in 1996, increasing its spending by 212.1% from 1996 to 1997.
Allegra increased its ad spending by 221.7%, catapulting into second place,
spending $64.1 million in 1997 as compared to a mere $19.9 million in 1996.
Among the pharmaceutical parent companies, however, the biggest increase
came from the Bristol-Myers Squibb Company which more than doubled its
advertising efforts -- increasing expenditures 125% from $47.6 million to
$107.3 million. Glaxo-Wellcome, won top honors, though, increasing its
billing by 57.1% from $99.7 million in 1996 to $156.6 million in 1997.
Coca-Cola was again the top corporate soft drink advertiser for 1997,
despite a decrease of 16.8%, spending $254.3 million in 1997 vs.
$305.5 million in 1996. PepsiCo was still number two, spending $179.1 million
in 1997 up from $148.9 million.
Leading the soft drink brand category, Coca-Cola Classic saw its ad
spending decrease by 14.2, from $131.3 million in 1996 to $112.6 million in
1997. PepsiCo increased ad spending for its leading brand, Pepsi, by a 14.7%
margin between 1996 and 1997.
In the closest battle for #1 positioning, MCI promoted its 1-800-Collect
brand by injecting a $114.7% increase into its media program, edging out
Sprint's Long Distance Residential brand -- $148 million to $147.5 million.
Stepping up the war among rival wireless companies, AT&T Wireless Service
leaped into third place with an increase in spending of 112% to $99.3 million.
Although AT&T's Long Distance Residential brand ranked number four in the
telecommunications arena, its ad spending was significantly reduced -- by
63.1%.
Buena Vista Distribution again topped all movie studios in advertising
expenditures during 1997 spending $281.6 million. Columbia Pictures
substantially increased its spending in 1997 by 32.4% to $138.7 million.
Anastasia was the number one movie for 1997 spending $30.1 million on
advertising. Steven Spielberg's Amistad ranked number two, Lost World
Jurassic Park, Flubber and Con Air were third, fourth and fifth, with only a
slight difference separating them, each spending approximately $22 million.
"It's Miller time" ....again, as Miller's lite beer was the top advertised
brand during 1997, increasing its spending by 48.9%. Meanwhile, Budweiser
significantly reduced its billing by 17.7%. However, for the second year in a
row, the biggest increase came from Miller Genuine Draft with a 186.8%
increase in 1997.
Anheuser-Busch slipped from its number one ranking as the top parent
company beer advertiser by decreasing its ad spending by 18% in 1997, which
translates into a $50 million reduction over the past year. Philip Morris was
able to secure the top spot, spending $263 million in 1997.
The CMR information reflects advertising dollars spent across all media.
CMR provides strategic advertising intelligence to advertising agencies,
advertisers, broadcasters and publishers. The tracking technologies collect
occurrence and expenditure data as well as the creative executions of over
750,000 brands in 15 media.
CMR is a VNU Marketing Information Services (VNU MIS) Company. Other VNU
MIS companies include: InterMedia Advertising Solutions, (InterMedia),
Claritas, PERQ/HCI, Inc., Spectra/Market Metrics, National Decision Systems,
Scarborough Research, National Research Group, Interactive Market Systems,
Marketing Resources Plus and Belden Associates. VNU MIS is a subsidiary of
VNU USA, which includes BPI Communications, Inc., Bill Communications, Inc.
and SRDS. VNU USA is owned by VNU, a Netherlands-based international
publishing and information company.
COMPETITIVE MEDIA REPORTING
OVERALL (All Advertisers)
Rank Parent Company 1997 1996 % Change
1 General Motors Corporation 2,226,933,5001,711,721,300 30.1
2 Proctor & Gamble Company 1,703,053,3001,515,992,500 12.3
3 Philip Morris Companies 1,319,015,9001,221,148,000 8.0
4 Chrysler Corporation 1,311,789,2001,119,718,700 17.2
5 Ford Motor Company 973,127,700 910,417,900 6.9
Rank Brand 1997 1996 % Change
1 McDonald's 578,275,500 597,701,500 -3.3
2 Burger King 423,206,900 360,657,600 17.3
3 Circuit City 400,130,900 372,O27,300 7.6
4 Home Depot 188,741,100 128,O22,700 47.4
5 Taco Bell 184,105,900 173,733,900 6.0
AUTOMOTIVE
Rank Parent Company 1997 1996 % Change
1 General Motors Corporation 2,092,201,3001,578,678,100 32.5
2 Chrysler Corporation 1,277,556,800 1,089,774,600 17.2
3 Ford Motor Company 892,596,300 826,687,900 8.0
4 Toyota Motor Corporation 590,236,300 543,988,900 8.5
5 Nissan Motor Company, Ltd. 452,663,800 439,373,900 3.0
Rank Brand 1997 1996 % Change
1 Honda Accord 135,625,400 120,366,500 12.7
2 Saturn 119,879,400 131,327,600 -8.7
3 Nissan Altima 110,783,100 29,023,500 281.7
4 Dodge Caravan 103,898,100 69,515,500 49.5
5 Jeep Grand Cherokee 90,478,000 64,611,000 40.0
DIRECT-TO-CONSUMER PRESCRIPTION DRUGS
Rank Parent Company 1997 1996 % Change
1 Glaxo-Wellcome 156,628,200 99,673,400 57.1
2 Merck & Company, Inc. 122,000,100 69,242,400 76.2
3 Bristol-Myers Squibb Company 107,250,900 47,647,100 125.1
4 Pfizer, Inc. 90,033,600 59,120,300 52.3
5 Schering-Plough Corporation 70,927,800 71,822,300 -1.2
Rank Brand 1997 1996 % Change
1 Pravachol Cholesterol 66,519,300 21,311,600 212.1
2 Allegra Allergy 64,163,900 19,946,200 221.7
3 Claritin Allergy 55,767,400 57,373,800 -2.8
4 Zyrtec Allergy 51,233,700 29,587,500 73.2
5 Zocor Cholesterol 45,593,800 40,819,800 11.7
TELECOMMUNICATIONS
Rank Parent Company 1997 1996 % Change
1 MCI Communications 442,467,200 303,607,800 45.7
2 AT&T Corporation 383,225,400 602,350,000 -36.4
3 Sprint Corporation 284,178,700 260,757,700 9.0
4 SBC Communications, Inc. 161,712,500 143,008,000 13.1
5 Bell Atlantic 135,161,400 157,824,300 -14.4
Rank Brand 1997 1996 % Change
1 1-800 Collect 148,012,900 68,936,300 114.7
2 Sprint Long Distance Residential147,502,700 144,925,400 1.8
3 AT&T Wireless Service 99,382,300 46,852,100 112.1
4 AT&T Long Distance Residential 96,250,000 261,045,700 -63.1
5 MCI Long Distance Residential 80,088,200 120,928,300 -33.8
BEER
Rank Parent Company 1997 1996 % Change
1 Philip Morris Companies 263,591,400 234,853,300 12.2
2 Anheuser-Busch Companies 233,053,800 284,373,900 -18.0
3 Adolph Coors Company 139,592,200 120,456,100 15.9
4 Heineken 19,241,800 20,349,800 -5.4
5 Stroh Brewery Company 18,120,100 11,551,800 56.9
Rank Brand 1997 1996 % Change
1 Miller Lite 149,020,100 100,111,400 48.9
2 Budweiser 98,411,000 119,560,800 -17.7
3 Coors Light 91,857,200 76,554,900 20.0
4 Miller Genuine Draft 61,148,600 21,320,900 186.8
5 Bud Light 55,732,400 66,247,300 15.9
SOFT DRINK
Rank Parent Company 1997 1996 % Change
1 Coca-Cola Company 254,259,000 305,476,600 -16.8
2 PepsiCo., Inc. 179,146,400 148,869,700 20.3
3 Cadbury Schweppes 129,358,000 128,795,000 0.4
4 Quaker Oats 61,961,100 42,785,000 44.8
5 Triarc Companies 21,763,100 37,349,800 -41.7
Rank Brand 1997 1996 % Change
1 Coca-Cola Classic 112,635,200 131,282,600 -14.2
2 Pepsi 105,964,200 92,346,100 14.7
3 Sprite 58,369,100 55,708,600 4.8
4 Gatorade 47,667,900 42,672,800 11.7
5 Dr. Pepper 45,690,700 40,177,500 13.7
MOTION PICTURES
Rank Movie Studio 1997 1996 % Change
1 Buena Vista Distribution 281,635,800 219,019,500 28.6
2 Warner Brothers, Inc. 201,321,400 205,737,800 -2.1
3 20th Century Fox Film Corp. 188,681,200 160,681,700 17.4
4 Paramount Pictures Corp. 141,250,300 194,087,400 -27.2
5 Columbia Pictures Industries 138,753,300 104,821,000 32.4
Rank Movie Title 1997
1 Anastasia 30,195,500
2 Amistad 22,956,600
3 Lost World Jurassic Park 22,392,400
4 Flubber 22,055,300
5 Con Air 21,473,600
Rank Movie Title 1996
1 Ransom 24,682,200
2 Space Jam 23,652,400
3 Rock 21,781,100
4 101 Dalmatians 21,730,600
5 Mission Impossible 20,915,900
Year End Growth Rates (thousands)
1997 vs 1996
Rank Movie Studio 1997 1996 % Change
1 Outdoor 1,462,701.0 1,107,489.6 32.07%
2 Cable Network Television 5,785,395 4,731,668.7 22.27%
3 National Spot Radio 1,684,236.0 1,463,863.3 15.05%
4 National Newspaper 1,650,017.8 1,436,968.0 14.83%
5 Newspaper 16,972,975.6 14,972,626.4 13.36%
6 Magazine 12,595,158.5 11,168,397.5 12.77%
7 National Syndication 2,515,065.8 2,326,286.8 8.12%
8 Sunday Magazine 1,016,644.4 942,395.9 7.88%
9 Network Radio 865,776.1 806,001.6 7.42%
10 Network Television 15,225,163.6 14,442,390.3 5.42%
11 Spot Television 14,718,282.0 14,204,965.2 3.61%