Online Ad Spending in the U.S. versus International

Top 100 Global Advertisers Heap Their Spending Abroad

Focused 62% of Budgets Outside U.S. Last Year, With Much Going to China

If you want to follow the money in advertising, get a passport.

The Top 100 global advertisers spent 62% of their measured-media budgets outside the U.S. last year, according to Ad Age's Global Marketers study, which covers more than 90 countries, territories and regions from Algeria to Zambia. Eleven of the 44 U.S.-based companies among the Global 100 rely so heavily on international sales that they do more than half their ad spending abroad.

Coca-Cola Co. allocates just 16.5% of its $2.67 billion measured-media spending to the U.S. market but spends nearly three times as much in Europe. Three-quarters of Coca-Cola's sales come from outside the U.S.

Procter & Gamble Co., the world's biggest advertiser since overtaking Unilever in 2002, devotes 65% of its $9.73 billion measured-media spending to international markets, slightly ahead of the 61% of P&G revenue that comes from outside the U.S. P&G is the biggest advertiser in all regions except Latin America and Africa, where Unilever reigns.

The biggest marketers are investing ad dollars wherever they can find revenue or potential for growth in a tough global economy—and increasingly, that's China. And some 39 of the Global 100 had measured-media spending in China last year. Five of them already invest more than 10% of their budgets there—Yum Brands, Pernod Ricard, Avon Products, Colgate-Palmolive Co. and P&G. For fast-food seller Yum Brands, China represents 20% of the company's worldwide measured spending of $1.41 billion. The parent of KFC and Pizza Hut generated 31% of 2008 revenue from its China division, where sales surged 36%.