1 | Advertising Age | June 26, 2006 SpecialSpecial ReportReport:100 Profiles LEADING NATIONAL ADVERTISERSSupplement SUPPLEMENT June 26, 2006 100 LEADING NATIONAL ADVERTISERS Profiles of the top 100 U.S. marketers in this 51st annual ranking INSIDE TOP 100 RANKING COMPANY PROFILES SPONSORED BY The nation’s leading marketers Lead marketing personnel, ranked by U.S. advertising brands, agencies, agency expenditures for 2005. contacts, as well as advertising Includes data from TNS Media spending by media and brand, Intelligence and Ad Age’s sales, earnings and more for proprietary estimates of the country’s 100 largest unmeasured spending. PAGE 8 advertisers PAGE 10 This document, and information contained therein, is the copyrighted property of Crain Communications Inc. and The Ad Age Group (© Copyright 2006) and is for your personal, non-commercial use only. 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Are proud to connect you with the leading CMOs See all the interviews at adage.com/point LAUNCHING JUNE 28 © 2006 Crain Communications Inc. www.adage.com 3 | Advertising Age | June 26, 2006 Special Report 100 LEADING NATIONAL ADVERTISERS SUPPLEMENT ABOUT THIS PROFILE EDITION THE 51ST ANNUAL 100 Leading National the Top 100 ($40.13 billion) and for all measured spending in 18 national media, Advertisers Report crowned acquisition- advertisers ($122.79 billion) in the U.S. Yellow Pages Association contributed ladened Procter & Gamble Co. as the top U.S. ad spending by ad category: This spending in Yellow Pages and TNS Marx leader, passing previous kingpen General chart (Page 6) breaks out 18 measured Promotion Intelligence provided free- Motors Corp. as U.S. advertising outlays media by 29 ad categories using TNS’ standing insert spending. for the Top 100 reached $101.31 billion in Stradegy data, from automotive at $20.96 Unmeasured spending is an Ad Age 2005, up 1.3%. billion, down 3.4%, to cigarettes & tobac- estimate and includes direct mail, sales P&G finished the year spending $4.61 co at $154.6 million, down 51.8%. promotion, co-op spending, couponing, billion versus GM’s $4.35 billion, the first catalogs, farm publications and special time in history any advertiser has ● Brands: There were 584 brands on events, to name a few. Unmeasured basi- climbed above the $4 billion mark. P&G’s which the Top 100 spent more than $10 cally is the difference between a compa- totals were packed with spending from million in measured media in 2005, ny’s reported or estimated ad costs and its Gillette Co., acquired in 2005. according to TNS. Ad Age lists each of measured media. The reported ad costs, if The one-two finish for the two Leaders these “megabrands” by their media global, is weighted by Ad Age to reflect a was the 31st time the two have claimed spending in each profile. U.S.-only share. the top two spots in this report, first pub- P&G supported 50 megabrands in 2005, STAFF FOR THIS REPORT: KEVIN BROWN, R. lished in 1956. P&G last led in 1996. well ahead of runner-up No. 8 Johnson & CRAIG ENDICOTT, SCOTT MACDONALD, MARK The slim 1.3% uptick in total advertis- Johnson at 27. Four of the P&G total came SCHUMANN,MAUREEN MORRISON,MARIA ing was a byproduct of heavy industry from Gillette—Ad Age consolidates for RAYNES, RUTH READER,LACY consolidation—marketers typically cut two consecutive full-year periods the ad WEATHERSBEE, MIKE RYAN AND DAN LIPPE. back on ad spending when faced with spending associated with acquired heavy costs of mergers—and the odd- megabrands. This methodology put TO REACH US year ad cycle that lacked an Olympics or a Gillette shaving products, Oral-B, Online: major U.S. election. Indeed, in the first Duracell and Braun into P&G totals. CLICK to get daily marketing news from AdAge.com quarter of 2006, a period including the CLICK for AdAge.com’s Customer Service page Winter Olympics, media spending ● Sales and earnings: Primary financial data Email: For questions about this growth rebounded to 5%. on each Top 100 company is provided for report, email This PDF version of the 100 Leading two consecutive years. Data include world- [email protected] National Advertisers augments the print- wide sales and earnings, U.S., North ed version (AA, June 26, 2006) by pro- American or Americas breakouts if avail- For general editorial ducing profiles on each Top 100 advertis- able, and sales by global division. information, write to er. Content of this PDF is as follows: [email protected] ● Personnel, brands, agencies: Ad Age Subscription & single copy ● Charts: Key charts in this report: lists key marketing executives at the sales 1-888-288-5900; The Top 100: The list (Page 8) covers brand or category level of each Top 100 Advertising (212) 210-0159; P&G to No. 100 TD Ameritrade Holding company, and personnel responsible for Library services (312) 649-5476, Corp. at $321.5 million, up 33.4%. those accounts at traditional and specialty (312) 649-5329 Thirty-five marketers on the list have agencies and media specialty companies. News offices: New York (212) U.S. ad totals above $1 billion. 210-0100; email: [email protected], Domestic ad spending: This chart (Page ● Methodology: U.S. measured spending Chicago (312) 649-5200; Detroit 5) is a compilation of media spending was pulled for the 250 largest national (313) 446-0320, Los Angeles (323) from 20 mediums—most of them moni- advertisers, a group pared to 100 after 370-2400; San Francisco (415) 459- tored by TNS Media Intelligence—and adding unmeasured ad estimates. 1401;Washington (202) 662-7200 unmeasured spending estimates both for TNS’ Stradegy product provided SPONSORED BY Why do I read Advertising Age? Being CMO can be a tricky voyage. But to navigate the stormy waters of eroding margins and volatile share- holders, I need Ad Age to make sure the competition doesn’t sail past my company in the regatta of big ideas. Plus, vast industry knowledge keeps me afloat whenever I’m forced to walk the plank. Even if it is off my 36-footer in Turks & Caicos. Frank Wainscott, CMO To subscribe, call 888.288.5900 or go to adage.com/subscribe. To advertise, contact Millie Chiavelli, Advertising Director, at 212.210.0280 or [email protected]. © 2006 Crain Communications Inc. Frank Wainscott does not exist. Even though he probably does. 5 | Advertising Age | June 26, 2006 Special Report 100 LEADING NATIONAL ADVERTISERS SUPPLEMENT DOMESTIC ADVERTISING SPENDING TOTALS Ranked by total U.S ad spending in 2005 ALL U.S. ADVERTISING SPENDING FROM TNS ADVERTISING EXPENDITURES MEDIUM AS % OF TOTAL COEN’S U.S. TOTALS* MEDIA 2005 2004 % CHG 2005 2004 2005 2004 % CHG Magazine $23,218 $21,628 7.3 8.6 8.2 $12,847 $12,247 4.9 Sunday magazine 1,739 1,529 13.7 0.6 0.6 NA NA NA Business publication 5,038 5,234 -3.7 1.9 2.0 4,170 4,072 2.4 Local magazine 451 360 25.2 0.2 0.1 NA NA NA National newspaper 3,467 3,303 4.9 1.3 1.3 7,465 7,629 -2.1 Local newspaper 25,537 25,164 1.5 9.4 9.5 39,870 38,985 2.3 FSI 1,442 1,392 3.6 0.5 0.5 NA NA NA Network TV 26,706 26,218 1.9 9.9 9.9 16,128 16,713 -3.5 Spot TV 17,115 18,794 -8.9 6.3 7.1 24,300 25,877 -6.1 Syndicated TV 4,222 3,931 7.4 1.6 1.5 3,865 3,674 5.2 Cable TV network 16,453 14,818 11.0 6.1 5.6 18,296 16,424 11.4 Cable local spot NA NA NA 0.0 0.0 5,358 5,103 5.0 Network radio 1,010 1,028 -1.7 0.4 0.4 814 836 -2.6 National spot radio 2,604 2,617 -0.5 1.0 1.0 3,469 3,540 -2.0 Local radio 7,431 7,453 -0.3 2.7 2.8 15,357 15,205 1.0 Outdoor 3,529 3,213 9.8 1.3 1.2 6,232 5,770 8.0 Direct mail NA NA NA 0.0 0.0 55,218 52,191 5.8 Yellow Pages NA NA NA 0.0 0.0 14,229 14,002 1.6 Internet 8,323 7,343 13.3 3.1 2.8 7,764 6,853 13.3 Measured 148,286 144,025 3.0 54.7 54.6 235,382 229,121 2.7 Unmeasured 122,788 119,741 2.5 45.3 45.4 35,692 34,645 3.0 Total U.S. 271,074 263,766 2.8 100.0 100.0 271,074 263,766 2.8 Notes: Dollars are in millions. Media expenditures by medium from TNS Media Intelligence, except Yellow Pages from Yellow Pages Association. Magazines include Spanish-language magazines. Newspapers include Spanish-language newspapers. Network TV includes Spanish-language TV networks. The total for ALL U.S. ADVERTISING media expenditures ($271.1 billion) is from Robert J. Coen’s media analysis at Universal McCann. *The ALL U.S. ADVERTISING unmeasured is the Coen total minus the TNS total media. For a definition of unmeasured, see methodology, Page S-9. SPONSORED BY 6 | Advertising Age | June 26, 2006 Special Report 100 LEADING NATIONAL ADVERTISERS SUPPLEMENT DOMESTIC ADVERTISING SPENDING BY CATEGORY Ranked by total U.S ad spending in 2005 RANK MEASURED MEDIA U.S.