We recently counted the sales expenses of 50 advertisers in 2023. Let's briefly analyze the phenomenon behind these data, as well as the trends in the development of the industry.
Increasing selling expenses is still the dominant trend
Among the above 50 companies, only 10 companies will see a year-on-year decline in sales expenses in 2023, and the remaining 40 companies will show varying degrees of growth, of which 21 will have sales expenses increased by more than 20%. This also reflects that more and more companies are beginning to realize the importance of ® marketing.
Distribution of sales expense growth of 50 companies
At present, the economy is gradually recovering. Data released by the National Bureau of Statistics showed that GDP for the whole of 2023 increased by 5.2% year-on-year, higher than the expected target set at the beginning of last year.
In the first quarter of this year, the national economy increased by 5.3% year-on-year. This will enhance corporate confidence, increase marketing power, and better win the attention and trust of consumers, thereby enhancing the long-term sustainable influence of the brand.
Overall, many of the 50 advertisers have seen a corresponding return on the increase in sales expenses. Only 4 of the 50 companies saw an increase in sales expenses, but their revenues declined.
The remaining 36 companies with increased sales expenses all had positive revenue growth. To a certain extent, this also shows that there is a certain positive correlation between the growth of selling expenses and revenue.
It is foreseeable that in the current era when the aroma of wine is also afraid of deep alleys, there will be more and more companies that continue to increase their investment in marketing ®.
1
Guang Zhanshen ®: Those industries are constantly increasing advertising?
☞Guangzhanshe 广战神 ® I Teacher Peng invited Peng Xiaodong ® tutor offline enterprise internal training I Ready-to-use, performance multiplied I☟
Peter Drucker, the father of modern management, believes that there are only two things to do in an enterprise, one is innovation, and the other is marketing. At a time when it is difficult to break through innovation, increasing marketing power ® is still a great tool for enterprises to achieve breakthroughs.
So, among these 50 companies, which industries are constantly increasing the cost of marketing power ®? Car companies are one of the big categories.
Among the 8 companies counted, only SAIC Group's sales expenses in 2023 will decline by 1%, Great Wall Motor, Geely Automobile, and Changan Automobile's sales expenses in 2023 will all increase by more than 40% year-on-year, and GAC Group and BYD's sales expenses will increase by 58% and 67% respectively in 2023.
Although the sales cost is not the same as the advertising power ® expense, it also accounts for a large proportion of it.
For example
1. Automotive industry
Great Wall Motor's advertising and media service fees will account for nearly half of the total in 2023, reaching 4.0456 billion yuan, a year-on-year increase of 32.75%; BYD's advertising and exhibition fees in 2023 will be 4.267 billion yuan, an increase of more than 90% year-on-year.
2. Household appliance industry
The home appliance industry is another industry that is increasing its sales expenses. Among the 10, only Joyoung's sales expenses declined, down 11% year-on-year. Hisense home appliances increased by 15%; Xiaoxiong Electric increased by 21% year-on-year; Omar Appliances grew by 43%; Gree has reached 51%.
The substantial increase in sales expenses in the household appliance industry is also inseparable from the rapid growth of its industry. According to the National Bureau of Statistics, the cumulative main business income of China's home appliance industry will reach 1.84 trillion yuan in 2023, a year-on-year increase of 7%; Profit reached RMB156.5 billion, up 12.1% year-on-year.
This is much higher than the 5.2% GDP growth rate in 2023. This also gives home appliance companies the confidence to further increase their marketing efforts ®. Taking Omar Electric as an example, the advertising cost in 2023 will be 11.0755 million yuan, compared with only 3.1507 million yuan in the previous year.
3. FMCG industry
FMCG is another important industry, and the pure marketing expenses ® (advertising and promotion) expenses in this industry account for a relatively high proportion of sales expenses.
Baiyunshan is one of the representatives, and the company's sales expenses will further increase in 2023, increasing by 3.90% year-on-year to 6.105 billion yuan, of which advertising expenses will be 1.082 billion yuan, a year-on-year increase of 17.73%. It is worth mentioning that in 2023, the proportion of advertising expenses in Baiyun Mountain will further increase, to 17.73%, and in 2022, this proportion will be 16.35%.
For another example, Dongpeng Beverage's sales expenses in 2023 will also show a significant increase, an increase of 35.06% over the previous year to 1.957 billion yuan, of which the publicity and promotion expenses will be as high as 864 million yuan, a year-on-year increase of 35.69%.
This is also inseparable from the attributes of FMCG companies, which have the characteristics of high consumption frequency, short use time and wide audience, which also determines that consumers are more susceptible to external environmental influences and stimuli, which also requires brands to maintain continuous exposure and strengthen the impression in the minds of consumers in order to gain brand loyalty.
4. Beauty industry
Beauty companies represented by Shanghai Jahwa are also industries with a relatively high proportion of pure marketing ® expenses (advertising and promotion) expenses. In 2023, Shanghai Jahwa's sales expenses will increase by 4.44% year-on-year to 2.770 billion, but you must know that its revenue in 2023 will be 6.598 billion yuan, and sales expenses will account for 41.98%;
For another example, Proya's sales expenses in 2023 will be 3.972 billion yuan, a year-on-year increase of 42.59%; Marubeni's sales expenses in 2023 will be 1.199 billion yuan, a year-on-year increase of 41.65%; Bethany's sales expenses in 2023 will be 2.610 billion yuan, a year-on-year increase of 27.43%.
Because of this, beauty companies have put cost reduction and efficiency improvement on the agenda. Taking Shanghai Jahwa as an example, while carrying out a major adjustment of the organizational structure, it will also carry out strategic transformation from the second half of 2023 - actively abandoning the category business with low gross profit, low profit and low brand premium, and gradually focusing on the category with high gross profit, high growth rate and high brand premium.
But focusing on marketing is ® already an important strategy for the beauty industry. Even if they are vigorously implementing cost reduction and efficiency improvement, the investment in marketing power ® may not change. For example, Shanghai Jahwa said that in 2024, the company will continue to reduce costs and increase brand launch, and strive to achieve double-digit year-on-year growth in operating income in 2024.
In this era of change, enterprises are facing challenges, but insisting on marketing power ® and continuously increasing marketing power ® may be an important logic for enterprises to go through the cycle and win long-term development for a long time in the future. (This article is for reference only and is not based on facts)
@所有人:
I am Mr. Peng Xiaodong, and I am especially grateful to all advertising media companies, advertising associations, advertising chambers of commerce, etc. for choosing to invite true love! I have been booked to attend the Annual Meeting and share the following topics:
1. "1 Second Cognition: Breaking Through the Stock Market Game and Building a Brand Growth Strategy"
2. Analysis of the Logical Thinking of China's Top Advertising Champion (Guang Zhanshen)
3. "Winning the Battle 2024 Advertising Media Performance Breakthrough Growth Road"
4. "2024 China Advertising Media Key Accounts Excellent Marketing Power"
5. "Winning the 2024 China Outdoor Advertising Sales Champion God of War Legion Secrets"...
The itinerary is tight from May to July, but there are still a small number of itineraries that can be coordinated and arranged, welcome to book in advance, more surprises are waiting for you!
Note: It is not recommended to invite teachers to teach, but also thank you for automatically withdrawing from our platform channels, etc., we will also clean up and optimize and upgrade at any time, appreciate each other, and achieve each other!
2
What did you do wrong in Guang Zhanshen's ® latest rollover advertisement?
☞Guangzhanshe 广战神 ® I Teacher Peng 邀请彭小东®导师线下企业内训 I 即学即用,业绩倍增 I ☟
1. Creativity is out of control: Uniqlo's "daddy flavor brings goods"
Uniqlo has always been known for its minimalism and fashion, but a recent ad made a big splash. A group of young men in suits and leather shoes in the advertisement suddenly started an absurd "stacking Arhats" war.
This ridiculous idea not only confuses people, but even blurs the brand image of Uniqlo. This is a typical case of creative runaway, when the creative content of the ad is seriously disconnected from the brand positioning, not only can it not effectively convey the brand message, but it will confuse the audience and damage the brand image.
2. Surreal luxury: Yang Mi's "English version of Yo-yo Mei"
The advertising film invited by the luxury brand Loewe to shoot Yang Mi was originally intended to be elegant and refined, but it turned out to be unexpectedly "down-to-earth".
In the advertisement, the spokesperson repeatedly reciting the brand name, as if practicing English pronunciation, this simple and repetitive creative technique is reminiscent of the brainwashing divine comedy "Yoyomei".
This reflects the fact that luxury advertising neglects to match the brand's tone in the pursuit of innovation, and even if you try to ride the ride of pop culture, you need to keep the brand noble and unique, otherwise it will become a joke.
3. The concept is out of touch with the brand: Ambrosi's "mermaid" advertisement
Ambrosi's yogurt "mermaid" advertisement overturned. Ambrosi's mermaid ad attempts to add a touch of mystery to the brand through mythological elements, but this kind of forcible association is incomprehensible.
Linking Greek yogurt to mermaids, although the brand wants to highlight the background of office workers' "fishing", it ignores the most important point - the core of advertising should serve the product and enhance the brand impression.
When the advertising creative is too whimsical and has nothing to do with the product itself, it will not only fail to effectively convey the product message, but also make consumers misunderstand the brand.
In addition, advertisements rely too much on the use of a certain element, which fails to fully show the characteristics and consumer experience of the product, making it difficult for consumers to obtain effective information about the product from the advertisement.
The essence of advertising is to highlight the characteristics of the product and the value proposition of the brand, and when the advertising creative deviates from this core and excessively pursues the uniqueness and innovation of the form, it is easy for people to misunderstand and even form an unfavorable impression of the brand.
4. The mystery of the poster design of "The Three-Body Problem": science fiction or surreality?
Generally speaking, the poster design of science fiction works tends to show grand cosmic scenes, advanced technological elements or alien creatures, etc., so as to quickly convey the core theme and atmosphere of science fiction.
However, the poster of the Netflix version of "The Three-Body Problem" adopts a very surrealist style of visual expression, such as local close-up of human organs, strange processing of the head, etc., these designs are not only puzzling, but even a little disturbing, which is very different from the sense of technology and futurism brought by ordinary science fiction works.
Originally, the poster may have wanted to emphasize some deep, philosophical themes in "The Three-Body Problem", or to create a unique visual impact.
However, this approach seems to ignore an important principle of marketing power ® – ensuring that the promotional materials accurately and effectively convey the theme and emotional tone of the work to the target audience.
When the visual representation of the poster does not match the audience's general expectations for the category of "science fiction", it is easy to cause a cognitive gap, causing the audience to feel confused or even disappointed. This is also the main reason for the "overturning" of the poster design this time.