Brand Management How Top Brands Stay on Top: Advertising

How Top Brands Stay on Top: Advertising

Do you ever wonder how top brands like Coca-Cola, Microsoft and Google can always compete with the best of them? It’s all about how much they spend on advertising.

So here are the numbers by percent of revenue spent on advertising in 2006, believe me these were shocking to me too.

  1. Microsoft - $11.5 billion (20% of revenue)
  2. Coca-Cola - $2.5 billion
  3. Yahoo - $1.3 billion (20% of revenue)
  4. eBay - $871 million (15% of revenue – most on Google advertising)
  5. Google – $188 million
  6. Starbucks – $95 million

It is nice to see the comparison of on and off-line products. This gives us a bit of an understanding on how the large company’s stay on top with their advertising, but it also shows that they do it in different way’s. Google does it cheaper because their aim is to turn out great products instead of great ads. Coca-Cola spends much more on trying to deliver the perfect ad that will captivate many at one time, therefore turning out mass sales to offset their large advertising budget.

But then Starbucks spent the least at $95 million on it’s advertising last year and did it in a way that is designed to create a brand for the culture and a happy repeat customer. But in all fairness to Microsoft and Yahoo a lot of that advertising money spent is for things other than search. It would be of interest to get the numbers on advertising specifically to have a fair comparison between Google, Microsoft and Yahoo.

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