In 1980 Advertising Expenditures In The United States Were 53 Billion And 49 Billion

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Advertising and promotion are an integral part of our social and economic systems. In our complex society, advertising has evolved into a vital communications system for both consumers and businesses. The ability of advertising and other promotional methods to deliver carefully prepared messages to target audiences has given them a major role in the marketing programs of most organizations. Companies ranging from large multinational corporations to small retailers increasingly rely on advertising and promotion to help them market products and services. In market-based economies, consumers have learned to rely on advertising and other forms of promotion for information they can use in making purchase decisions.

Evidence of the increasing importance of advertising and promotion comes from the growth in expenditures in these areas. In 1980, advertising expenditures in the United States were $53 billion, and $49 billion was spent on sales promotion techniques such as product samples, coupons, contests, sweepstakes, premiums, rebates, and allowances and discounts to retailers. By 2002, nearly $240 billion was spent on local and national advertising, while spending on sales promotion programs targeted toward consumers and retailers increased to more than $250 billion.1 Companies bombarded the U.S. consumer with messages and promotional offers, collectively spending more than $30 a week on every man, woman, and child in the country—nearly 50 percent more per capita than in any other nation.

Promotional expenditures in international markets have grown as well. Advertising expenditures outside the United States increased from $55 billion in 1980 to nearly $214 billion by 2002.2 Both foreign and domestic companies spend billions more on sales promotion, personal selling, direct marketing, event sponsorships, and public relations, all important parts of a firm's marketing communications program.

The tremendous growth in expenditures for advertising and promotion reflects in part the growth of the U.S. and global economies and the efforts of expansion-minded marketers to take advantage of growth opportunities in various regions of the world.

The Growth of Advertising and Promotion

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