How much should the advertising fee of an enterprise account for the sales of the enterprise? What's the ratio? We often see tens of millions of advertisements from FMCG companies.

First of all, let's look at the composition of corporate advertising expenses, including: film and television advertising production, models, celebrity spokespersons, online and offline media, terminal activation and advertising materials, terminal display, promoters, exhibitions, investment fairs, travel expenses, and external advertising companies. These are the components of advertising expenses of large fast-moving consumer goods enterprises.

Advertising budget:

For fast-moving products with a large and deep market, advertising costs will inevitably be much higher. For example, Coca-Cola's annual advertising budget in China accounts for about 65,438+05% of its sales, and this proportion will continue to rise with the launch of new products and the intensification of competition. In 2005, the author served Coca-Cola and planned the New Year promotion activities. The theme of the promotion was "Golden Rooster Dancing in the New Year, Coca-Cola is more delicious". The main product is a large bottle of Coca-Cola, and the advertising fee consists of: video advertising production, promotional materials and terminal stacking production, CCTV media in first-tier cities such as Beishangguang, satellite TV media and KA supermarket in second-tier cities. The total advertising expenses exceeded 100 million yuan, and the sales of Coca-Cola before and after the Spring Festival exceeded 6,543.8 billion yuan.

It can be concluded that enterprises must analyze the market capacity, current channel number, product price and brand awareness of the product when making advertising budget. Blind resource saving and crazy advertising are not good strategies. At the moment of big data marketing, it has become a mainstream communication strategy to identify our market, customers, channels and media that can influence their purchase decisions and conduct accurate communication.