Digital Drives Down Ad Spending Gains

National advertisers are saving a few trees even as they save a few dollars. Major marketers increased 2014 U.S. ad spending by a slim 2.0%, according to Advertising Age’s annual report on the nation’s top 200 advertisers. Total US ad spending for the 200 leading national advertisers reached a record $137.8 billion in 2014, but the growth rate was the lowest since the ad-market recovery took hold in 2010, according to Ad Age. The slow growth comes as major marketers are putting ad spending under scrutiny, reallocating budgets to deliver better results. They're also spending more on digital, with campaigns that cost less to run than traditional media.


But whether through television spots, radio air time, magazine spreads or web banners, Procter & Gamble remains the No. 1 US advertiser with 2014 ad spending of $4.6 billion. P&G's ad spend declined 4.2% last year, but it remained far ahead of AT&T, the No. 2 US advertiser, which spent $3.3 billion last year. The telecom ad budget rose a scant 0.1% last year.


The only other marketer in Happi's field to make the list was L'Oréal, which came in at No. 9. The world's biggest beauty company spent $2.2 billion in 2014, down 2.0% from a year ago.


Here's a look at the Top 10 US Advertisers according to Ad Age.

1. Procter & Gamble, $4.6 billion, down 4.2%
2. AT&T, $3.3 billion, up 0.1%
3. General Motors, $3.1 billion, down 0.7%
4. Comcast, $3.0 billion, down 1.7%
5. (tie) Verizon, $2.5 billion, up 3.6%
    Ford, $2.5, down 3.6%
7. American Express, $2.4 billion, up 7.9%
8. (tie) Fiat Chrysler, $2.2 billion, up 14.0%
     L'Oréal, $2.2 billion, down 2.0%
10. Walt Disney, $2.1 billion, up 7.4%

“The report demonstrates how blue-chip marketers are getting more bang for their billions of bucks,” said Bradley Johnson, Ad Age’s director of data analytics. “The story is not that marketers are pulling back. They are spending smarter, doubling down on digital strategies and taking unnecessary costs out of marketing.”