Electronics BTS Ad Spend 2
To determine the consumer electronics brands that spend the most on advertising during the back-to-school shopping season, we began our research by searching through marketing resources such as Adage as well as research media resources such as Forbes and USAToday. Our initial search only produced information on the total amounts spent by consumer electronics companies during the season and some insights into key trends.
Next, we searched through statistics sites such as Statista and research resources such as MarketsandMarkets and Deloitte. We found statistics on the overall back-to-school marketing budget as well as yearly changes but nothing on the brands that spend the most in the U.S.
Third, we looked for academic resources and journals in the hope of finding any information on the subject. Also, we considered marketing analytics sites such iSpot and CMO. These strategies did not provide any information that would enable us to answer the question. Still, there were no breakdowns of marketing spend for either the consumer electronics sector or any other sector.
As a last resort, we decided to use the garnered data to triangulate the required information. Our research had established that Dell, Microsoft, and Amazon are among the largest ad spenders with consumer electronics offerings. It also established that Nintendo is among the largest ad spenders in the United States. A resource by YouGov verified that the four companies' products are among the most popular and famous in the United States. Our logic was that the products could only be famous and popular if the companies employed comprehensive marketing strategies, and that require high spending. We also established from Media Radar that the ad budgets for the consumer electronic products offered by Microsoft and Amazon are substantial. We found Dell's and Nintendo's U.S. ad budgets from a resource provided by Adage.
From YouGov, we established that Whirlpool is the most popular and famous brand apart from the four already provided above. Further research established that Whirlpool also has a high ad spend budget in the United States. Notably, we divided Dell's U.S. ad spend of $509 million by three since its annual report mentions that advertising budget is distributed among its three key segments. Therefore, Dell's U.S. ad spend dedicated to its consumer electronic segment is about $170,000. We have used Nintendo's total U.S. ad spend in our calculations since it is primarily an electronic consumer brand.
Additionally, we had found the amount of money spent on back-to-school marketing in the United States and the overall ad spend in the country. We used these data points to calculate approximate ad spends during the back-to-school season for the five companies. In 2017, the total amount spend on back-to-school advertising in the United States was 166.5 million. In the same year, $205 billion was spent on advertising in the United States. Below, are our calculations.
Percentage of back-to-school ad spend = ad spend during back-to-school season/total annual ad spend X 100 = 166,500,000/205,000,000,000 X 100 = 0.08%
Considering the total U.S. ad spend for each company:
Company U.S. ad spend Back-to-school ad spend
(0.08% X U.S. ad spend)
Amazon $300 million (approx) $240,000
Nintendo $234 million $187,200
Microsoft $200 million (approx) $160,000
Dell $170 million (calculated) $136,000
Whirlpool $100 million (approx) $80,000
We then researched and provided the descriptions of the companies and their respective back-to-school campaigns. Kindly refer to the attached spreadsheet for more information. These figures should be treated as estimates since they were calculated using estimates and with the assumption that all companies would use almost similar ratios of their ad spend budgets on back-to-school marketing. Kindly refer to columns A-F, rows 7-11 of the Consumer Electronics tab of the attached spreadsheet for more information.