U.S. Marketing Spending To Exceed $1 Trillion In 2005. First Sizing Of Corporate Marketing Shows Manufacturers Spending Most

US

Blackfriars Communications: Project marketing spending at U.S. companies will be nearly $1.074 trillion this year. In their first ever sizing of the U.S. marketing market, 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. It is widely known that companies spend a lot of money to market their products, but most people do not realize how large an activity it really is," said Carl Howe, a principal of Blackfriars. "Our research shows that marketing spending by all companies this year will be somewhat larger than the contribution to the gross domestic product of the entire finance and insurance industry. That's a big business. 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. Today, 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," said Howe. "his research allowed us to measure not only how much money was being spent on marketing, but also let us compare how diverse industries spend their marketing dollars in different ways.

Marketing 2005: Sizing US Marketing Publ 20050601