What is a mega-brand when it comes to advertising?
Posted by jdblair | July 9, 2013
I was reading an article on Ad Age when I stumbled across an interesting artcile about "mega-brands". What classified a company as a mega-brand? According to the article it is simple - they spend a TON of money. And. They spend a TON of money. Oh and. They spend a LOT of money. Sitting at the apex of the list, living among the giants, are two communication mega-brands; AT&T and Verizon. The top two brands combined for just over $3 billion in advertising budgets. It's interesting at a second glance, both companies are down approximately 14% year over year in advertising spend.
Coming to the "big dog" list for the first time in a while, at #21 - spending nearly $500 million - is Microsoft. Microsoft also laid claim to the second biggest jump in year over year advertising at nearly a 70% increase. No doubt driven by the new fangled device - or not so new fangled if you are familiar with the oh so trusty tablet world - the Surface.
As for competing through advertising, I am sure we all agree there are benefits to a healthy competition. Take Samsung - #1 on the list of biggest increases in advertising spending, at 125% in year over year spending, bringing their annual budget to just under $600 million in measured media. So what makes these brands "mega-brands"? Is it the dollar amount they are spending? Not without great creative I say. Samsung - you are winning right now - not spending as much as Apple, but gaining MAJOR market share in the ever crowded smart-phone mecca.
I think that local companies can be "local mega-brands". I feel that it takes great creative and smart strategies at the end of the day to lay claim to a "mega-brand" and not just the money you spend!
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