There are many reasons why top companies want to spend so much on advertisement, they want their brands to stand out and be appealing to customers. They want to build a loyal customer base, and most obviously they want to boost their sales and revenue.
Whether they are car companies seeking new lifetime customers for their automobiles or phone companies that are trying desperately to stand out from the pack. Companies know that they have to spend money to make money, and that the more they spend on marketing, the more they earn, up to a certain point.
The amount of money these big companies spend on advertising might seem enormous, but that is because they are reaching out to their customers on so many different levels compared to previous decades.
The internet, social media, websites and search engines all contributed to making marketing more prevalent than ever in people’s lives. Old fashioned ads remain such as newspapers, magazines and TV, but there is an unstoppable push towards online marketing and making the purchase of any product and service as simple as a click of a mouse.
However, these new innovative marketing strategies are not cheap, and it costs money to keep the ads and websites running, although it does seem to be working.
This new advertising is especially important for companies seeking to expand, since they can tap into new markets and regions that they never thought was possible before. Because of globalization there is constantly increasing demand for products from all over the world, and the opportunities for big companies to expand globally are endless.
Despite all the different sections of a company, sales is what brings in revenue and keeps a company growing and arguably could be the most important aspect of a business. Here are five major companies that are spending huge sums on advertising.
5: Verizon Communications Inc.
Based in New York, this telecommunication and broadband company became the largest local phone company back in 2000, and quickly gained 25 million customers. This company now provides popular and well-known brands such as Apple, BlackBerry, and iPhones to its customers. Verizon also provides services and support in ways of Verizon Wireless Community and Wireless Workshops.
When it first began, Verizon spent $300 million just on marketing its new brand. In 2012, Verizon spent about $1.71 billion on ads. The company has recent revenue of $120 billion and a net income of $23 billion in 2013.
4: AT&T Inc.
Centered in Dallas, Texas, this international telecommunications company is the second-largest mobile telephone service provider in the US. The company provides customers with cellphones and devices as well as plans like Talk, Text, and Data plans. It is considered to have the most reliable 4G LTE networks and largest Wi-Fi networks in the US with nearly one million global hotspots at many popular places.
AT&T currently earns $128.75 billion in revenue and a net income of $18.25 billion. In 2012, AT &T spent $1.57 billion US dollars on advertisement, which was actually a 17 percent reduction since 2011. According to AT&T’s report, the company increased its wireless revenues by 7 percent while Mobile Shares received a staggering 11.3 million new accounts.
For AT&T, the reports were strong, while the company continued to invest time and money on future transformational growth. For instance, that same year, the company became a member of Power Matters Alliance, which helps create an eco-friendly wireless power and making certain that one day there will be an endless supply of wireless power for mobile devices.
3: General Motors Corp.
General Motors is an international corporation based in Michigan, USA. The company focuses on the production and distribution of vehicles, which include the brand names of Cadillac, Chevrolet, and GMC. For slightly over a century, this corporation was the front runner in safety, advancements and expertise.
General Motors spent roughly $10 million on Facebook advertisements in recent years, while its US ad spending rose by eight percent, resulting to about $1.64 billion in advertisement spending in 2012. The corporation even spent roughly $95 million Canadian dollars (or $86 million US dollars) on advertisement media in Canada alone in 2013. Currently, General Motors has $155.42 billion in revenue and $5.346 billion in net income in 2013.
2: Comcast Corp
Comcast was founded in 1963 and is now the most recognized and leading communication company worldwide. It is America’s largest cable establishment and home internet supplier. This company produces well-known media content, which include Entertainment Television, NBC, and Universal Pictures.
Comcast spent about $1.71 billion US dollars on advertisement in 2012, which is an increase of 9.7 percent on ad spending for this company. The corporation has revenues of $64.66 billion in revenue and a net income of $6.82 billion in 2013.
Today, Comcast is shaping the future in regards to technology advancement. It is expected to release its X2 Entertainment Operating System this year. Basically, the X2 would allow its customer to interact and intergrade with their entertainment system through cloud innovation.
1: Procter & Gamble Co.
Founded by two UK entrepreneurs, William Procter and James Gamble, this leading American company provides goods to consumers worldwide. The company offers products in areas of beauty, and health as well as pet and household care. Procter and Gamble often supply a lot of well-known brands such as Frebreze, Crest and Olay.
In 2012, the company received a whopping $84.17 billion in revenues. According to the Advertising Age’s DataCenter, Procter and Gamble spent roughly $2.80 billion on US ads in 2012, about $1.85 billion on television advertising alone. According to Fortune magazine, Procter & Gamble was rated 15th for the “World’s Most Admired Companies”.
In 2013, the CEO of Procter & Gamble initiated a 35 percent digital-marketing budget, which includes online advertisements in the form of videos, social sites, and mobile devices. Even though certain products are having difficulties online, Procter and Gamble is anticipated to be ahead of its competitors, with about an average of $1.45 billion in expenses towards digital advertising spending, which comes to around 4.7 percent in US revenue.
Currently, this company has 121,000 employees and has a net income of $11.31 billion.