2020 is about to pass, but the impact of the epidemic on the economy may continue for a long time.
According to RECMA’s 2019 data, Digiday analyzed the latest income of the world’s top 10 advertising spenders to understand how they adjusted their marketing strategies to deal with the ongoing crisis.
Compared with 2018, Nestlé, Expedia and General Motors replaced GlaxoSmithKline, McDonald’s, and Comcast in the top 10 global advertising spending list.
Procter & Gamble: advertising and marketing spending in 2019 of 12.2 billion US dollars
Because the demand for household cleaning and hygiene products has soared, P&G has become a beneficiary company under the epidemic. Net sales in the third quarter increased by 9% over the same period last year, reaching 19.3 billion US dollars, and the company’s net profit increased by 19%.
Jon Moeller, P&G’s chief financial officer, revealed that consumer product companies’ marketing expenditures increased by more than $100 million in the quarter.
Amazon: advertising and marketing spending in 2019 of 6.7 billion US dollars
Amazon’s revenue in the third quarter of this year was US$96.1 billion, an increase of 37%; its net profit was US$6.3 billion, an increase of 200%, which was far higher than analysts’ expectations.
Marketing costs in the quarter increased by 14% to nearly $5.4 billion.
This week, Amazon also released a 2020 Christmas advertisement.
As for its own advertising business, Amazon’s ‘other revenue’ (mainly composed of advertising revenue) increased by 51% to $5.4 billion. At the same time, network traffic is increasing.
L’Oréal: advertising and marketing expenditures of $6.7 billion in 2019
L’Oréal’s sales rebounded in the third quarter, increasing by 1.6% year-on-year to more than 7 billion euros (approximately US$8.2 billion), thanks to its “excellent performance” in China and Brazil, the reopening of salons and e-commerce Accelerated development.
Unilever: $6.3 billion in advertising and marketing spending in 2019
Unilever’s third-quarter sales increased by 4.4%, exceeding analysts’ expectations of a 1.3% increase. Like Procter & Gamble, Unilever also benefits from market demand for sanitation and cleaning products.
Unilever CEO Alan Jope (Alan Jope) said that the third quarter increased marketing expenses, and plans to increase marketing expenses again in the fourth quarter.
This expenditure will not only be used for traditional advertising and marketing, but will also increase investment in digital marketing.
Volkswagen: $4.5 billion in advertising and marketing spending in 2019
Volkswagen is the world’s largest automaker by sales. As sales in its largest markets, China and Western Europe, rebounded, Volkswagen sold 2.6 million vehicles in the third quarter, with a pre-tax profit of 3.6 billion euros (about 4.2 billion US dollars).
Renault-Nissan-Mitsubishi Alliance: Advertising and marketing expenditures of $4.4 billion in 2019
Renault reported that revenue fell by 8.2% in the third quarter, but this was a significant improvement from the 35% decline in the previous quarter. The company said the plan to cut costs is paying off.
Coca-Cola: $4.3 billion in advertising and marketing spending in 2019
Although the epidemic has severely affected beverage sales in restaurants, bars, and other outdoor venues, Coca-Cola’s third quarter has significantly improved compared with the second quarter, with revenue falling 9% to $8.6 billion, compared with a decline in the previous quarter 28%.
Coca-Cola is vigorously streamlining its business and plans to reduce its 430 ‘main brands’ to 200.
Compared with the same period last year, marketing expenditures in the third quarter fell by 30%. Coca-Cola plans to increase its advertising and marketing investment from the fourth quarter to 2021.
Nestlé: $4.2 billion in advertising and marketing spending in 2019
The Swiss food giant’s sales growth in the third quarter was 4.9%, which was attributed to the growth of its health sciences business as consumers bought vitamins, supplements and nutritional drinks.
Expedia: $4.2 billion in advertising and marketing spending in 2019
Expedia’s Chinese name is Yikexing. It is a world-renowned online travel website that spends approximately US$5 billion on advertising each year.
Under the epidemic situation, group chairman Barry Diller said in April that advertising spending this year may not exceed $1 billion.
A large part of Expedia’s advertising costs is spent on digital marketing channels, especially Google.
General Motors: $3.9 billion in advertising and marketing spending in 2019
General Motors’ vehicle sales in the third quarter fell by approximately 10% compared to the same period last year, but each month’s sales in the quarter increased month-on-month.
Research shows that many consumers regard private cars as a ‘safe space’, and more and more urban residents are starting to buy cars. Extremely low car loan interest rates, combined with savings from reducing vacation, restaurant and other entertainment costs, have also driven demand for cars.
During the epidemic, GM’s advertisements were frequently adjusted and replaced every two weeks.
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