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AD-TO-SALES RATIOS

When you're developing your advertising plan, one of the first steps is determining the appropriate advertising budget for your business. A useful starting point is looking at advertising-to-sales ratios to find the national average advertising expenditure for your business category.

Over the past 25 years, many companies have been united in their use of one such tool - Illinois-based Schonfeld & Associates' annual study, Advertising Ratios & Budgets. The June 2009 edition, with key industry data published here for your use, covers hundreds of industry sectors. In addition to advertising-to-sales ratios, the study forecasts ad spending in 2010 and sales growth for each industry.

The first column lists the type of business. The second column is the Standard Industrial Classification (SIC). The third column is the average percent businesses in that industry spend on all advertising based on their total gross sales. The fourth column compares the estimated amount spent on advertising in 2009 to the forecasted amount for 2010 and the last column shows forecast sales growth for the industry.

Industry Name SIC Code Ad $$
as %
of Sales
2010 % Ad Growth Rate 2010 % Sales Growth Rate
Accident & Health Insurance Products 6321 1.1 5.9 5.3
Accounting,  Auditing And Bookkeeping Services 8721 1 28 10.4
Advertising 7310 2.3 12.1 12.8
Advertising Agencies 7311 12.8 13.4 5.1
Agricultural Services 700 0.2 2.1 10.7
Air Courier Services 4513 0.9 7.5 6.1
Air Transport, Scheduled 4512 0.9 7.1 8
Airports & Terminal Services 4581 1.5 8.9 18
Amusement & Recreation Services 7900 4.2 7.4 6.4
Amusement Parks 7996 7.5 7.5 6.3
Apparel & Other Finished Products 2300 4.7 7 7.6
Apparel And Accessory Stores 5600 5 3.9 1.1
Arrange Transport-Freight, Cargo 4731 0.1 8.4 9.6
Auto And Home Supply Stores 5531 1.7 1.5 5.7
Auto Dealers, Gas Stations 5500 0.8 -2.5 0.5
Auto Rental & Leasing, No Drivers 7510 3.3 -2.5 1.9
Auto Repair, Services, Parking 7500 9.2 1.5 6.9
Bakery Products 2050 0.6 -18.6 3.2
Beverages 2080 6.1 6.8 10.3
Building Maintenance & Services 7340 4 4.9 10.5
Building Materials, Hardware, Garden - Retail 5200 1.9 7.9 10.3
Business Services,  NEC 7389 1.8 7.7 5.7
Cable And Other Pay TV Services 4841 6.2 1.1 9.9
Carpets And Rugs (Product) 2273 0.9 1.5 -6.6
Catalog, Mail-order Houses 5961 4 11.3 12.2
Clothing -- Mens, Boys Furnishings,  Work 2320 3.7 2.3 4.5
Clothing -- Wmns, Miss, Child, Infant Undgrmt 2340 5.9 6.1 4.9
Clothing -- Womens, Misses, Jrs Outerwear 2330 8.9 12.3 5.2
Commercial Physical,  Biological Research 8731 0.3 2.3 13
Commercial Printing 2750 0.1 2 3.8
Communications Services,  NEC 4899 4.1 5.6 11.8
Computer & Office Equipment 3570 0.9 3.7 8.4
Computer And Computer Software Stores 5734 0.6 18.2 15.5
Computer Processing, Data Prep Service 7374 1.6 6.8 5
Computer Programming Service 7371 0.1 4.8 12.8
Computer Programming, Data Process 7370 3.5 9.4 9.3
Construction - Special Trade 1700 0 6.2 18.5
Construction Machinery & Equip. 3531 0.2 4.6 9.3
Consumer Electronics Stores 5731 2.4 5.3 6.4
Convenience Stores 5412 0.6 21.8 0.9
Credit Reporting Agencies 7320 1.3 10.9 5.2
Department Stores 5311 5.6 3.2 -1.8
Detective, Guard, Armor Car Services 7381 1.2 10.7 3.1
Direct Mail Advertising Services 7331 2 11.3 -4.4
Distilled And Blended Liquor 2085 14.1 7.9 7.9
Drug & Proprietary Stores 5912 0.6 7.5 14.8
Drugs And Proprietary-whsl 5122 0.2 -0.9 5.8
Eating And Drinking Places 5810 4 20.1 6.5
Eating Places 5812 2.7 6.8 7
Educational Services 8200 12.2 8.2 10
Electric Services 4911 0.5 13.4 8.4
Electrical Work 1731 0.2 -19.2 12.3
Employment Agencies 7361 2.1 10.2 4.6
Engineering Services 8711 0.1 21.2 18.1
Equip Rental & Leasing,  NEC 7359 2.3 -1.9 13.8
Family Clothing Stores 5651 1.8 0 1.4
Finance Lessors 6172 1.1 9 -9.9
Fire,  Marine,  Casualty Insurance 6331 1.1 -6.1 0.2
Food And Kindred Products 2000 13.3 14.6 8.5
Furniture Stores 5712 7.8 -8.4 -12.1
Gen Building Contractor-residential 1520 1.5 10.5 2.9
Gen Medical & Surgical Hospitals 8062 0.5 -19.2 8.3
Grocery Stores 5411 0.8 2.5 1.8
Hazardous Waste Management 4955 0.2 30.6 19.4
Health Services 8000 1.3 -5.3 5.3
Help Supply Services 7363 0.6 0.6 6.6
Hobby, Toy and Game Shops 5945 4 8.6 2.1
Home Furniture & Equip Store 5700 5.6 0.9 -0.1
Home Health Care Services 8082 1.5 -2.7 11.5
Hospital & Medical Service Plans 6324 0.3 1.6 7.2
Hospitals 8060 0.6 -4.9 -4.3
Hotels And Motels 7011 1.9 0.2 2.2
Hotels,  Other Lodging Places 7000 1.2 10.5 5.2
Household Appliances 3630 2 9 0.1
Household Audio & Video Eq 3651 5.2 7.6 10.9
Household Furniture 2510 6 -9.1 -14.1
In Vitro, In Vivo Diagnostics 2835 0.9 3.5 18
Insurance Agents, Brokers & Service 6411 0.4 10.1 4.8
Investment Advice 6282 1.8 -3 -17.1
Investors,  NEC 6799 0.3 19.3 16.5
Jewelry & Watches-whsl 5094 1 3.2 -15.3
Jewelry Stores 5944 6.3 2.8 -2.9
Lawn,  Garden Tractors,  Equip 3524 15.1 26.9 24.6
Leather And Leather Products 3100 2.1 14 14.2
Life Insurance 6311 2 17.4 -3.6
Loan Brokers 6163 0.8 -39.8 7.3
Lumber & Other Bldg Materials - Retail 5211 1.7 -3.9 -5.4
Lumber And Wood Products,  Ex Furn 2400 1.3 6.4 -29.4
Mailing, Reproduction, Comml Art Services 7330 15.1 19.9 18.8
Malt Beverages 2082 5.2 6.4 17.5
Management Consulting Services 8742 1.2 6.1 11.6
Management Services 8741 0.2 15.5 13.2
Meat Packing Plants 2011 1.7 2.7 2.8
Medical Laboratories 8071 0.4 21 9.1
Medicinal Chems, Botanicl Products 2833 0.7 10.1 -6.8
Membership Sport & Rec Clubs 7997 3.3 14.3 12.4
Metal Doors, Frames, Mold, Trim 3442 1.6 -12.7 -20.1
Millwork, Veneer, Plywood 2430 0.2 -4.1 -18.6
Misc Amusement & Rec Service 7990 2.2 7.6 8.5
Misc Business Credit Institutions 6159 0.1 -42.7 6.6
Misc Business Services 7380 1.3 18.7 11.6
Misc Equip Rental & Leasing 7350 1.3 3.8 3
Misc Food Preps,  Kindred Products 2090 2.5 8.7 9.4
Misc Furniture And Fixtures 2590 0.5 -15 -16
Misc Health & Allied Service, NEC 8090 0.1 10.7 8.8
Misc Manufacturng Industries 3990 2.1 9.5 7.4
Misc Plastics Products 3080 0.5 -6.1 -1.3
Misc Shopping Goods Stores 5940 3.2 5.4 4.3
Misc Transportation Equipment 3790 1.2 6.2 6.3
Miscellaneous Publishing 2741 2.3 -3.9 -2.7
Miscellaneous Retail 5900 1.1 9.5 9.6
Mobile Homes 2451 0.3 -15.9 -16.6
Mortgage Bankers & Loan Corr 6162 1.7 -4 1.9
Motion Pic,  Videotape Prodtn 7812 25.1 21.1 13.2
Motion Pict,  Videotape Distr 7822 2.2 5 11.7
Motion Picture Theaters 7830 0.9 1.1 9.1
Motorcycles, Bicycles & Parts 3751 1.6 7.2 -1.5
Musical Instruments 3931 1.8 1.2 1.2
Newspaper:Publishing,  Pubg & Print 2711 0.2 2.1 -5.5
Nursing & Personal Care Facilities 8050 0.2 21.4 10.5
Office Furniture 2520 0.2 5.5 5.9
Offices Of Medical Doctors 8011 0.6 13.7 16.2
Oil And Gas Field Expl Services 1382 0.1 10.8 20.8
Operative Builders 1531 1.7 -67.6 -59.7
Operators - Apartment Bldgs 6513 0.1 -0.8 1.3
Operators - Commercial Bldgs 6512 1 16.3 16.5
Ophthalmic Goods 3851 4.9 12.1 11.1
Optical Instruments & Lenses 3827 0.7 2.8 7.6
Ordnance And Accessories 3480 11.5 13.9 10.3
Paints,  Varnishes,  Lacquers 2851 2.4 7.7 7.9
Periodical:Pubisher, Pubg & Print 2721 6 2.9 2.2
Personal Credit Institutions 6141 0.8 -9.9 4.6
Personal Services 7200 5.7 5.6 4
Pharmaceutical Preparations 2834 4.2 5.9 7
Photofinishing Laboratories 7384 6.8 20.9 20.4
Photographic Equip & Supply 3861 1.1 -8.2 4.4
Pottery And Related Products 3260 13.1 20.4 10.5
Prefab Metal Bldgs And Comp 3448 0.4 8.7 5.3
Prefab Wood Bldgs, Components 2452 0.2 -13.9 -21.9
Prepackaged Software 7372 2.4 13.6 11.9
Public Bldg & Rel Furniture 2531 1 -0.2 2.4
Racing, Incl Track Operations 7948 3.8 3.1 1.5
Radio Broadcasting Stations 4832 3.6 4.1 4.1
Real Estate 6500 2.9 14.5 13.3
Real Estate Agents & Mgrs 6531 6.1 4.4 -0.1
Real Estate Investment Trust 6798 3.7 1.2 9.7
Record And Tape Stores 5735 1.9 0.9 0.5
Retail Stores,  NEC 5990 3.6 6.2 7.2
Security & Commodity Brokers 6200 0.2 6.3 32.1
Security Brokers & Dealers 6211 1.1 -1.2 -9.9
Service To Motion Picture Prodtn 7819 1.6 -3 -0.2
Ship & Boat Bldg & Repairing 3730 0.9 3.3 8.2
Shoe Stores 5661 2.6 4.5 1
Skilled Nursing Care Facilities 8051 0.4 8.7 9.2
Social Services 8300 0.5 -1.6 6.8
Spec Outpatient Facility, NEC 8093 0.3 10.5 14.9
Sporting & Athletic Gds,  NEC 3949 9 -2 -3.7
Subdivide,  Developers,  Excluding Cemetery 6552 0.3 13.7 11.2
Television Broadcast Station 4833 8.2 7.8 4.4
Testing Laboratories 8734 0.5 3.1 9.2
Tires And Inner Tubes 3011 1.9 -1.2 -1.2
Transit & Passenger Transportation 4100 0.1 20.2 15.2
Transportation Services 4700 25.4 8.9 10.3
Trucking,  Except Local 4213 0.3 0.7 1.9
Trucking, Courier Service, Ex Air 4210 0.5 20.9 5.3
Variety Stores 5331 1.2 4.1 4.8
Video Tape Rental 7841 4.2 4.8 3.3
Watches,  Clocks And Parts 3873 9.2 5.2 7.3
Water Transportation 4400 3.9 7.1 9.9
Wine, Brandy & Brandy Spirits 2084 5.2 -10.5 -24.2
Women's Clothing Stores 5621 3.5 -6.5 -5.7
Wood Hshld Furniture,  Ex Upholstered 2511 3.8 18.2 2

Note: Advertising Ratios & Budgets is compiled from a variety of government and published financial records. Since reporting may vary from company to company, careful use of the findings is advised. Caution is urged when: (1) financial events such as mergers, acquisitions, and divestitures may distort spending patterns; (2) private ownership of very large companies in specific industries may mean that some advertisers are omitted; (3) multi-industry companies are reported only in their primary industry based on sales of their dominant line of business. The data also may be impacted by missing data in company reports and by new companies entering into an industry, changes in business regulation and court rulings, and new ventures and changes in the level of business activity. Despite these potential limitations, Advertising Ratios & Budgets is quite useful when applied with imagination and judgment and combined with first-hand knowledge of the industry.         

Source: Schonfeld & Associates, 2009 "Advertising Ratios & Budgets" Study