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The Lounge => Media and Inspiration => Topic started by: Seanchai on June 27, 2007, 01:41:10 PM

Title: What Folks Spend on Ads
Post by: Seanchai on June 27, 2007, 01:41:10 PM
We've talked about advertising and its relationship to gaming, game products and game companies before. This week's AdAge has a break down of spending for 2006. Here's a couple of figures.

Total U.S. Ad Spending (not a complete list)
Proctor & Gamble - $4,898,000,000 (top of the list)
McDonalds - $1,748,300,000
PepsiCo - $1,322,700
Wal-Mart - $1,072,600,000
Coca-Cola - $740,800,000
Wendy's International - $435,200,000
Burger King Holdings - $379,500,000
State Farm - $338,100,000 (bottom of the list)

Top 10 Beverages (not a complete list)
Coca-Cola - 15.9% market share
Pepsi - 10.2 %
Mountain Dew - 4.5%

Top Beverages Total Average for Two Giants
Coca-Cola - 5.75 (unweighted 23%)
PepsiCo - 4.6 (23%)

Top 10 Resturant Chains
McDonalds - 7.7% market share
Burger King - 2.4%
Wendys - 2.2%
Subway - 2.2%
Starbucks - 2.0%
Taco Bell - 1.7%
KFC - 1.5%
Dunkin' Donuts - 1.3%
Applebee's - 1.3%

Seanchai
Title: What Folks Spend on Ads
Post by: jeff37923 on June 27, 2007, 06:30:56 PM
Advertising for gaming is entering a crisis period soon as well, to dovetail on this topic. Both Dragon and Dungeon are primary sources of advertising for third party OGL publishers, with both magazines going away in the next couple of months where these small businesses place their ads? How will this affect the gamer marketplace?

EDIT: I missed the earlier conversation on gaming ads.
Title: What Folks Spend on Ads
Post by: Seanchai on June 28, 2007, 11:23:21 AM
Quote from: jeff37923EDIT: I missed the earlier conversation on gaming ads.

Not so much about gaming ads, but about why D&D is number one. There was some speculation that it's currently king of the hill because WotC can spend more than any other company on advertising. As you can see, however, just throwing money around doesn't take you to the top, etc..

Seanchai
Title: What Folks Spend on Ads
Post by: ElectroKitty on June 28, 2007, 12:03:12 PM
Is that million dollar amount for Pepsi accurate? Pepsi only spent a million dollars on advertising in 2006?
Title: What Folks Spend on Ads
Post by: Seanchai on June 28, 2007, 05:12:39 PM
Quote from: ElectroKittyIs that million dollar amount for Pepsi accurate? Pepsi only spent a million dollars on advertising in 2006?

Sorry, that's $1,322,700,000.

Seanchai
Title: What Folks Spend on Ads
Post by: droog on June 29, 2007, 02:17:23 AM
Quote from: SeanchaiAs you can see, however, just throwing money around doesn't take you to the top, etc..
I don't know. The three food chains in the top ten advertising list are also the top three food chains. Looks like correlation at the very least.
Title: What Folks Spend on Ads
Post by: ElectroKitty on June 29, 2007, 03:21:21 PM
Quote from: SeanchaiSorry, that's $1,322,700,000.

Seanchai
That seems more likely. :p
Title: What Folks Spend on Ads
Post by: Seanchai on June 30, 2007, 11:41:00 AM
Quote from: droogI don't know. The three food chains in the top ten advertising list are also the top three food chains. Looks like correlation at the very least.

Burger King spent 55 million dollars less than Wendy's and they have basically the same market share.

Coca-Cola spent half of what PepsiCo spent and they still have the bestseller by far and beat them overall.

Seanchai
Title: What Folks Spend on Ads
Post by: droog on June 30, 2007, 03:26:26 PM
Quote from: SeanchaiBurger King spent 55 million dollars less than Wendy's and they have basically the same market share.

Coca-Cola spent half of what PepsiCo spent and they still have the bestseller by far and beat them overall.

Seanchai
Sure, but the general trend is pretty clear. And Coke is an interesting case, because it has a massive product recognition factor. Coke is a synonym for cola drinks the way D&D is a synonym for RPGs.
Title: What Folks Spend on Ads
Post by: Ian Absentia on July 01, 2007, 12:20:33 AM
Quote from: SeanchaiNot so much about gaming ads, but about why D&D is number one. There was some speculation that it's currently king of the hill because WotC can spend more than any other company on advertising.
Out of curiosity, where does D&D get advertised?  Because, in my daily/weekly/monthly circles of activity (with the obvious exception of a small handfull of websites), I never encounter any advertising for it.  Never.

!i!
Title: What Folks Spend on Ads
Post by: Seanchai on July 02, 2007, 05:47:50 PM
Quote from: droogSure, but the general trend is pretty clear.

That if you spend millions of dollars advertising, you'll probably get customers?

It's just not a sure thing. You can spend millions of dollars and not necessarily be better off than someone who didn't.

Seanchai
Title: What Folks Spend on Ads
Post by: Seanchai on July 02, 2007, 05:49:43 PM
Quote from: Ian AbsentiaOut of curiosity, where does D&D get advertised?  Because, in my daily/weekly/monthly circles of activity (with the obvious exception of a small handfull of websites), I never encounter any advertising for it.  Never.

They have has some comic book ads, a television campaign, etc.. But outside of Dragon and Dungeon, they do little in the way of advertising.

Seanchai
Title: What Folks Spend on Ads
Post by: droog on July 04, 2007, 08:00:16 PM
Quote from: SeanchaiThat if you spend millions of dollars advertising, you'll probably get customers?

It's just not a sure thing. You can spend millions of dollars and not necessarily be better off than someone who didn't.

Seanchai
I think we'll have to agree to disagree on what those figures show.
Title: What Folks Spend on Ads
Post by: Tyberious Funk on July 04, 2007, 09:12:40 PM
Quote from: droogI think we'll have to agree to disagree on what those figures show.

The figures are a small sample and they represent the most extreme end of their respective markets.  In reality, the the figures show nothing.
Title: What Folks Spend on Ads
Post by: droog on July 04, 2007, 09:14:51 PM
Well, quite.