Want to know what top companies like Microsoft, Google, and even Coca-Cola spend on advertising? Here’s a breakdown by percent of revenues in 2006, starting with the most first (according to this article):
- Microsoft – more than 20 percent of their annual revenue or $11.5 billion
- Coca-Cola – more than $2.5 billion
- Yahoo – more than 20 percent of their annual revenue or $1.3 billion
- eBay – 14 percent to 15 percent of its revenue – which was $871 million, much of that to advertise on Google
- Google – In the millions rather than billions of dollars – with $188 million
- Starbucks – $95 million
I like the side-by-side comparison between online and offline brands. And from the stats, eBay spends a lot buying ads on Google (though less than they used to) while Google spends a lot on recruiting employees. Google has spent on advertising, like buying billboards for GOOG-411 – their free directory service that I use quite regularly. But Google spends considerably less because their approach is to turn out great products instead of great ads.
Offline, Starbucks takes a similar approach. They spent just $95 million on advertising last year, which is 49 percent less than Google. But they built most of their business on their branding and by creating happy customers and making the brand part of a culture.