U.S. Marketing Spending Exceeded $1 Trillion In 2005
Marketing spending at U.S. companies will
be nearly $1.074 trillion in 2005, according to Blackfriars
Communications. In their first ever sizing of the U.S. marketing
market in 2005, they found that if marketing were a vertical industry,
it would represent about 9% of the gross domestic product of the United
States, and it would rank as the fifth largest industry, behind
manufacturing, government, real estate, and professional services.
A key finding in Blackfriars' analysis proved that industry affiliation has a big effect on marketing activities and spending. Retail trade companies spend 11.5% of revenue on marketing, the largest percentage of the six vertical industries studied. In contrast, financial services firms spend only 6.8% of revenue on marketing, the smallest percentage of the industries analyzed.
It found that manufacturers will
spend the most this year on marketing, projecting a nearly $120.1
billion budget. This marketing budget includes advertising, direct
marketing, events, and other activities. Yet manufacturers won't spend
the most money in every category of marketing. When it comes to direct
marketing, for example, retailers will spend $24.5 billion this year,
more than two dollars for every dollar that manufacturers spend.
Manufacturers spend the most on marketing, largely because they represent nearly $1.5 trillion of the U.S. gross domestic product. But retailers actually spend a higher percentage of their revenues on marketing, and they invest more in measurable activities like direct marketing and online promotion, according to Blackfriars.
To determine the size of U.S. marketing spending, Blackfriars collected data from 300 senior business executives about their marketing budgets, attitudes, and spending. Blackfriars then correlated this data with overall business spending information collected by the 2001 U.S. Census and with gross domestic product data provided by the U.S. Bureau of Economic Analysis.