Boosted by newer advertising channels and increased marketing activity, ad spending is forecast to increase on average 0.6% in 2011 from 2010 levels, with outlays led by the diversified food products, pharmaceutical, and telecom industries, according to Schonfeld & Associates, Inc.

The diversified food products industry is projected to lead in ad spending, reaching $30 billion in 2011, up 1.2% from 2010 levels.

In contrast, spending in the auto industry is projected to decline 8.5% in 2011, to $18 billion, with annual sales in that industry also expected to fall (9.6%). However, Daimler, Fiat, Ford, General Motors, Honda, and Toyota will each spend over $1 billion in advertising, according to the forecast.

Nestle is expected to remain the top ad spender in 2011, with an estimated budget of $17.3 billion, up 1.4% from 2010 levels.

Below, other projections issued by Schonfeld & Associates.

2011 Forecast

• Pharmaceutical industry ad spending is forecast to exceed $26 billion in 2011, up 5.4% from 2010 levels. The direct to consumer marketing of drugs by manufacturers continues to strengthen pharmaceutical advertising. Biotech and electromedical apparatus industry spending is expected to increase 5% or more.
• Telecom services ad spending is expected to reach $17 billion worldwide in 2011, up 1.3% from 2010. Ad spending for wireless communications services will continue increasing, growing 5.8%, to $24.6 billion.
• In the mobile category, spending by manufacturers of traditional cell phones lags that of smartphone companies, reflecting consumers' switch to the more powerful phones. RIM, the maker of the Blackberry, is projected to increase its ad budget over 22%.
• Among PC manufacturers, the pace of industry wide growth has slowed, except for Apple, which is expected to increase ad spending 11% from 2010 levels.
• Software ad spending is expected to increase 8.9%.
• Semiconductors and related devices ad spending will fall over 10% in 2011, while spending by computer communication equipment manufacturers will decline 1.6%.
• Retail department stores, such as JC Penney and Macy’s, will spend $ 3.2 billion in 2011, down 4% from a year earlier.
• Variety stores, such as Target and Wal-Mart, will increase their ad budgets 1.7% for a total of $7.6 billion in 2011.
• Catalog houses are expected to continue increases in ad spending—reflecting Internet competition—to over $2 billion annually.
• Online stores eBay and Amazon are expected to grow their ad budgets, 5% and 18%, respectively.
• Web portal Google is planning to spend $455 million, up 13% from 2010 levels, while Chinese search engine Baidu is expected to spend $17 million, up 22%. Priceline.com plans to spend $573 million, up 19%.

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