Diversified Foods, Pharmaceutical Companies to Boost Ad Budgets in 2012

Last year, research shop Schonfeld & Associates predicted an average advertising budget to sales ratio of about 2%  for 2011. And the firm’s analysts also expected total ad growth of 8.5% across major industries. So far, the ad rebound in 2011 has been positive and the company’s analysts say several industries will fuel more ad spending in 2012.

Specific industries that were anticipating higher ad budgets this year included the health care (7%), electronics & scientific instruments (6.1%) and the computers and software fields.  Wholesalers (-3.9%),  financial services (-10.1%) and transportation and travel (-5.6%) were among the industries expected to cut back on advertising expenditures in 2011.

Preliminary data for 2012 indicates some changes in big advertising spenders. Newly released data from Schonfeld shows diversified foods will be a growth category next year with a 3.7% spending increase, industry wide, reaching $35.3 billion. And analysts expect pharmaceutical companies to boost marketing budgets again,  with a 7.6% jump to $28 billion. Not surprisingly, competitors in the red-​hot wireless communications space will continue to fight for market share and spend 2.8% more on advertising for a total of $20.6 billion. Telecommunications service providers will increase their spending by almost 0.7% to $19 billion. One industry that will see cutbacks in 2012 is automotive where a 12.9% cut is predicted.

Keep in mind that these numbers are merely projections. Big changes in the economy or new product announcements could affect these numbers significantly.

[Sources: Schonfeld finds food, pharmaceutical companies. Btobonline​.com. 14 Jun. 2011. Web. 28 Jun. 2011; Industry sector Ad to Sales Ratios. Schonfeld. Saibooks​.com. Web. 28 Jun. 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.