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 2006 edition, published here for your use, covers hundreds of industry sectors. In addition to advertising-to-sales ratios, the study forecasts ad spending in 2007 and ad 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 last column compares the estimated amount spent on advertising in 2006 to the forecasted amount for 2007.
Industry |
SIC No. |
Ad $ as % Sales |
Annual % Growth Rate |
ACCIDENT & HEALTH INSURANCE |
6321 |
.6 |
7.9 |
ACCOUNTING, AUDITING AND BOOKKEEPING |
8721 |
.8 |
32.1 |
ADVERTISING |
7310 |
.8 |
17.8 |
AGRICULTURAL CHEMICALS |
2870 |
1.6 |
5.1 |
AGRICULTURE PRODUCTION-CROPS |
100 |
.2 |
3.8 |
AIR COURIER SERVICES |
4513 |
.8 |
8.7 |
AIR TRANSPORT, SCHEDULED |
4512 |
.9 |
7.7 |
AIR-COND, HEATING, REFRIG EQ |
3585 |
1.2 |
3.0 |
AMUSEMENT & RECREATION SVCS |
7900 |
5.2 |
3.8 |
AMUSEMENT PARKS |
7996 |
8.4 |
-3.4 |
APPAREL & OTHER FINISHED PDS |
2300 |
5.1 |
9.6 |
APPAREL AND ACCESSORY STORES |
5600 |
4.2 |
9.3 |
AUTO AND HOME SUPPLY STORES |
5531 |
2.9 |
16.1 |
AUTO DEALERS, GAS STATIONS |
5500 |
.9 |
6.9 |
AUTO RENT & LEASE, NO DRIVERS |
7510 |
2.1 |
9.1 |
BEVERAGES |
2080 |
7.8 |
7.6 |
BIOLOGICAL PDS, EX DIAGNSTICS |
2836 |
1.6 |
12.9 |
BLANKBOOKS, BINDERS, BOOKBIND |
2780 |
5.5 |
10.4 |
BLDG MATL, HARDWR, GARDEN-RETL |
5200 |
3.1 |
6.0 |
BOOKS: PUBG, PUBG & PRINTING |
2731 |
7.6 |
0.5 |
BTLD & CAN SOFT DRINKS, WATER |
2086 |
2.9 |
11.3 |
BUSINESS SERVICES, NEC |
7389 |
1.4 |
7.0 |
CABLE AND OTHER PAY TV SVCS |
4841 |
1.9 |
-2.1 |
CACULATE, ACCT MACH, EX COMP |
3578 |
0.5 |
5.4 |
CAN FRUIT, VEG, PRESRV, JAM, JEL |
2033 |
1.9 |
13.8 |
CAN, FROZN, PRESRV FRUIT & VEG |
2030 |
3.1 |
0.3 |
CATALOG, MAIL-ORDER HOUSES |
5961 |
2.5 |
11.2 |
CIGARETTES |
2111 |
2.2 |
6.5 |
CMP INTEGRATED SYS DESIGN |
7373 |
1.4 |
10.6 |
CMP PROCESSING, DATA PREP SVC |
7374 |
2.9 |
3.3 |
CMP PROGRAMMING, DATA PROCESS |
7370 |
3.6 |
7.4 |
COMMERCIAL PRINTING |
2750 |
7.2 |
13.0 |
COMMUNICATIONS EQUIP, NEC |
3669 |
0.6 |
13.1 |
COMMUNICATIONS SERVICES, NEC |
4899 |
7.4 |
14.7 |
COMPUTER & OFFICE EQUIPMENT |
3570 |
0.9 |
5.3 |
COMPUTER COMMUNICATION EQUIP |
3576 |
0.4 |
8.9 |
COMPUTER PERIPHERAL EQ, NEC |
3577 |
2.9 |
7.8 |
COMPUTER PROGRAMMING SERVICE |
7371 |
0.2 |
20.7 |
COMPUTER STORAGE DEVICES |
3572 |
0.3 |
5.0 |
COMPUTERS & SOFTWARE-WHSL |
5045 |
0.2 |
13.0 |
CONGLOMERATE |
9997 |
0.4 |
6.5 |
CONSTRUCTION MACHINERY & EQ |
3531 |
0.3 |
14.2 |
CONVENIENCE STORES |
5412 |
2.7 |
14.2 |
CONVRT PAPR, PAPRBRD, EX BOXES |
2670 |
1.3 |
5.0 |
COOKIES AND CRACKERS |
2052 |
0.6 |
7.9 |
CUTLERY, HANDTOOLS, GEN HRDWR |
3420 |
1.4 |
9.3 |
DAIRY PRODUCTS |
2020 |
1.3 |
8.9 |
DENTAL EQUIPMENT & SUPPLIES |
3843 |
1.2 |
9.3 |
DEPARTMENT STORES |
5311 |
4.8 |
7.5 |
DIRECT MAIL ADVERTISING SVCS |
7331 |
1.2 |
24.2 |
DISTILLED AND BLENDED LIQUOR |
2085 |
16.8 |
6.3 |
DOLLS AND STUFFED TOYS |
3942 |
10.9 |
4.8 |
DRAWNG, INSULATNG NONFER WIRE |
3357 |
0.2 |
17.0 |
DRUG & PROPRIETARY STORES |
5912 |
0.7 |
9.7 |
DRUGS AND PROPRIETARY-WHSL |
5122 |
0.0 |
4.5 |
EATING PLACES |
5812 |
2.8 |
5.7 |
EDUCATIONAL SERVICES |
8200 |
9.6 |
14.5 |
ELEC MEAS & TEST INSTRUMENTS |
3825 |
0.5 |
-8.7 |
ELECTR, OTH ELEC EQ, EX CMP |
3600 |
2.6 |
10.5 |
ELECTRIC HOUSEWARES AND FANS |
3634 |
3.5 |
-3.2 |
ELECTRIC LIGHTING, WIRING EQ |
3640 |
0.9 |
7.9 |
ELECTRICAL INDL APPARATUS |
3620 |
2.6 |
10.5 |
ELECTROMEDICAL APPARATUS |
3845 |
0.9 |
11.0 |
ELECTRONIC COMPONENTS, NEC |
3679 |
0.5 |
5.9 |
ELECTRONIC COMPUTERS |
3571 |
1.1 |
8.2 |
ELECTRONIC PARTS, EQ-WHSL, NEC |
5065 |
0.1 |
6.7 |
ENGINES AND TURBINES |
3510 |
1.4 |
16.1 |
EQUIP RENTAL & LEASING, NEC |
7359 |
2.1 |
1.7 |
FABRICATED RUBBER PDS, NEC |
3060 |
12.1 |
7.8 |
FAMILY CLOTHING STORES |
5651 |
2.0 |
4.9 |
FARM MACHINERY AND EQUIPMENT |
3523 |
0.8 |
8.7 |
FOOD AND KINDRED PRODUCTS |
2000 |
11.9 |
5.5 |
FOOTWEAR, EXCEPT RUBBER |
3140 |
3.8 |
7.4 |
FURNITURE STORES |
5712 |
8.4 |
11.2 |
GAMES, TOYS, CHLD VEH, EX DOLLS |
3944 |
10.6 |
3.1 |
GENERAL INDL MACH & EQ, NEC |
3569 |
0.9 |
0.7 |
GRAIN MILL PRODUCTS |
2040 |
3.0 |
5.3 |
GREETING CARDS |
2771 |
2.0 |
-8.8 |
GROCERIES & RELATED PDS-WHSL |
5140 |
1.2 |
4.9 |
GROCERY STORES |
5411 |
1.0 |
3.6 |
HARDWR, PLUMB, HEAT EQ-WHSL |
5070 |
0.1 |
8.0 |
HELP SUPPLY SERVICES |
7363 |
0.4 |
4.9 |
HOBBY, TOY, AND GAME SHOPS |
5945 |
4.8 |
10.4 |
HOME FURNITURE & EQUIP STORE |
5700 |
3.5 |
12.6 |
HOTELS AND MOTELS |
7011 |
1.6 |
1.1 |
HOUSEHOLD APPLIANCES |
3630 |
2.0 |
-0.2 |
HOUSEHOLD FURNITURE |
2510 |
4.9 |
10.4 |
ICE CREAM & FROZEN DESSERTS |
2024 |
1.5 |
5.1 |
INDL COML FANS, BLOWRS, OTH EQ |
3564 |
1.7 |
9.5 |
INDL INORGANIC CHEMICALS |
2810 |
0.2 |
9.8 |
INDL TRUCKS, TRACTORS, TRAILRS |
3537 |
0.7 |
11.1 |
INVESTMENT ADVICE |
6282 |
1.6 |
10.5 |
JEWELRY STORES |
5944 |
4.9 |
6.2 |
KNIT OUTERWEAR MILLS |
2253 |
3.4 |
7.5 |
LEATHER AND LEATHER PRODUCTS |
3100 |
2.8 |
8.9 |
LIFE INSURANCE |
6311 |
1.1 |
-0.1 |
LUMBER & OTH BLDG MATL-RETL |
5211 |
1.7 |
12.9 |
MAILING, REPRO, COMML ART SVCS |
7330 |
10.4 |
22.3 |
MALT BEVERAGES |
2082 |
8.0 |
8.9 |
MANAGEMENT SERVICES |
8741 |
0.1 |
17.7 |
MANIFOLD BUSINESS FORMS |
2761 |
0.5 |
-1.1 |
MEAT PACKING PLANTS |
2011 |
1.4 |
5.5 |
MED, DENTAL, HOSP EQ-WHSL |
5047 |
0.4 |
8.0 |
MEDICINAL CHEMS, BOTANICL PDS |
2833 |
1.6 |
0.8 |
MEMBERSHIP SPORT & REC CLUBS |
7997 |
3.1 |
8.5 |
MENS, BOYS FRNSH, WORK CLTHNG |
2320 |
4.1 |
9.8 |
METALWORKING MACHINERY & EQ |
3540 |
1.5 |
10.9 |
MISC AMUSEMENT & REC SERVICE |
7990 |
2.6 |
11.5 |
MISC BUSINESS SERVICES |
7380 |
1.0 |
-8.5 |
MISC CHEMICAL PRODUCTS |
2890 |
1.8 |
12.9 |
MISC DURABLE GOODS-WHSL |
5090 |
0.5 |
11.4 |
MISC ELEC MACHY, EQ, SUPPLIES |
3690 |
4.1 |
17.0 |
MISC EQUIP RENTAL & LEASING |
7350 |
1.0 |
13.3 |
MISC FABRICATED METAL PRODS |
3490 |
4.9 |
10.5 |
MISC FABRICATED TEXTILE PDS |
2390 |
0.3 |
12.4 |
MISC FOOD PREPS, KINDRED PDS |
2090 |
2.6 |
13.5 |
MISC INDL, COML, MACHY & EQ |
3590 |
0.4 |
13.1 |
MISC MANUFACTURNG INDUSTRIES |
3990 |
1.9 |
7.2 |
MISC NONDURABLE GOODS-WHSL |
5190 |
0.4 |
5.8 |
MISC PLASTICS PRODUCTS |
3080 |
3.4 |
12.9 |
MISC SHOPPING GOODS STORES |
5940 |
3.7 |
9.8 |
MISC TRANSPORTATION EQUIP |
3790 |
1.5 |
11.1 |
MISCELLANEOUS PUBLISHING |
2741 |
2.4 |
18.3 |
MISCELLANEOUS RETAIL |
5900 |
0.5 |
14.3 |
MORTGAGE BANKERS & LOAN CORR |
6162 |
1.8 |
19.2 |
MOTION PICTURE THEATERS |
7830 |
1.5 |
-8.7 |
MOTOR HOMES |
3716 |
0.4 |
9.2 |
MOTOR VEH SUPLY, NEW PTS-WHSL |
5013 |
0.5 |
6.6 |
MOTOR VEHICLE PART, ACCESSORY |
3714 |
0.3 |
6.8 |
MOTOR VEHICLES & CAR BODIES |
3711 |
2.6 |
5.3 |
NEWSPAPER:PUBG, PUBG & PRINT |
2711 |
9.0 |
4.0 |
OFFICE FURNITURE, EX WOOD |
2522 |
0.6 |
8.1 |
OPERATIVE BUILDERS |
1531 |
0.8 |
11.4 |
OPHTHALMIC GOODS |
3851 |
4.2 |
8.1 |
ORTHO, PROSTH, SURG APPL, SUPLY |
3842 |
1.5 |
10.1 |
PAINTS, VARNISHES, LACQUERS |
2851 |
1.6 |
5.9 |
PAPER & PAPER PRODUCTS-WHSL |
5110 |
1.7 |
29.0 |
PAPER MILLS |
2621 |
1.4 |
3.6 |
PATENT OWNERS AND LESSORS |
6794 |
5.7 |
12.5 |
PERFUME, COSMETIC, TOILET PREP |
2844 |
8.9 |
9.3 |
PERIODICAL:PUBG, PUBG & PRINT |
2721 |
3.9 |
-2.8 |
PERSONAL CREDIT INSTITUTIONS |
6141 |
0.6 |
4.0 |
PERSONAL SERVICES |
7200 |
4.7 |
8.3 |
PETROLEUM REFINING |
2911 |
0.1 |
17.1 |
PHARMACEUTICAL PREPARATIONS |
2834 |
4.8 |
10.5 |
PHONE COMM EX RADIOTELEPHONE |
4813 |
2.8 |
6.6 |
PHOTOGRAPHIC EQUIP & SUPPLY |
3861 |
2.7 |
-6.7 |
PLASTICS PRODUCTS, NEC |
3089 |
1.4 |
0.6 |
POTTERY AND RELATED PRODUCTS |
3260 |
4.8 |
2.7 |
POULTRY SLAUGHTER & PROCESS |
2015 |
2.1 |
15.4 |
PREFAB WOOD BLDGS, COMPONENTS |
2452 |
0.1 |
-3.0 |
PREPACKAGED SOFTWARE |
7372 |
2.5 |
9.1 |
PROF & COML EQ & SUPPLY-WHSL |
5040 |
1.0 |
12.2 |
RACING, INCL TRACK OPERATIONS |
7948 |
2.0 |
1.5 |
RADIO BROADCASTING STATIONS |
4832 |
3.2 |
-8.4 |
RADIO, TV BROADCAST, COMM EQ |
3663 |
3.9 |
11.1 |
RADIO, TV, CONS ELECTR STORES |
5731 |
3.1 |
6.9 |
RADIOTELEPHONE COMMUNICATION |
4812 |
2.6 |
8.5 |
REAL ESTATE AGENTS & MGRS |
6531 |
2.7 |
19.4 |
REAL ESTATE INVESTMENT TRUST |
6798 |
3.9 |
7.3 |
RECORD AND TAPE STORES |
5735 |
1.9 |
0.9 |
REFRIG & SERVICE IND MACHINE |
3580 |
1.0 |
8.6 |
RETAIL STORES, NEC |
5990 |
4.4 |
9.0 |
RUBBER AND PLASTICS FOOTWEAR |
3021 |
11.7 |
9.7 |
SECURITY & COMMODITY BROKERS |
6200 |
1.4 |
-7.1 |
SECURITY BROKERS & DEALERS |
6211 |
0.7 |
2.1 |
SEMICONDUCTOR, RELATED DEVICE |
3674 |
2.4 |
13.4 |
SHOE STORES |
5661 |
2.2 |
3.9 |
SOAP, DETERGENT, TOILET PREPS |
2840 |
9.7 |
10.9 |
SPECIAL CLEAN, POLISH PREPS |
2842 |
10.4 |
5.5 |
SPECIAL INDUSTRY MACHY, NEC |
3559 |
0.3 |
6.1 |
SPORTING & ATHLETIC GDS, NEC |
3949 |
5.3 |
5.8 |
SRCH, DET, NAV, GUID, AERO SYS |
3812 |
3.7 |
16.5 |
STEEL WORKS & BLAST FURNACES |
3312 |
0.2 |
11.5 |
STRUCTURAL CLAY PRODUCTS |
3250 |
0.4 |
-51.2 |
SUGAR & CONFECTIONERY PRODS |
2060 |
6.4 |
10.7 |
SVCS TO DWELLINGS, OTH BLDGS |
7340 |
4.3 |
4.8 |
TELE & TELEGRAPH APPARATUS |
3661 |
1.3 |
4.6 |
TELEVISION BROADCAST STATION |
4833 |
11.9 |
2.0 |
TIRES AND INNER TUBES |
3011 |
2.4 |
11.9 |
TOBACCO PRODUCTS |
2100 |
4.0 |
3.5 |
TRANSPORTATION SERVICES |
4700 |
16.9 |
9.4 |
TRUCK TRAILERS |
3715 |
0.1 |
10.5 |
VARIETY STORES |
5331 |
1.3 |
13.3 |
VIDEO TAPE RENTAL |
7841 |
5.3 |
13.6 |
WATCHES, CLOCKS AND PARTS |
3873 |
10.7 |
13.5 |
WATER TRANSPORTATION |
4400 |
8.5 |
16.7 |
WINE, BRANDY & BRANDY SPIRITS |
2084 |
3.3 |
11.3 |
WMNS, MISS, CHLD, INFNT UNDGRMT |
2340 |
7.0 |
5.7 |
WOMEN'S CLOTHING STORES |
5621 |
3.4 |
7.0 |
WOMENS, MISSES, JRS OUTERWEAR |
2330 |
2.6 |
6.4 |
WOOD HSHLD FURN, EX UPHOLSRD |
2511 |
18.4 |
-20.6 |
