I am on a quest to figure out what part of the US GDP is spent on marketing. The current US GDP according to the World Bank website is $15.6 trillion. Healthcare in America is estimated to be about 18% of the GDP and my gut is telling me dollars spent on market are probably in the same ballpark.
GDP is defined as “the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products” so one might say since marketing comprise all four Ps, product being one, that all of GDP is marketing, but let’s use What’s the Idea? math and remove the cost of producing goods from the equation.
So what are we counting? Research and development of new products. Headcount of people in all marketing services; within the company and vendor. All out of pocket for advertising, promotion, PR, research, sales, channel, web and service. Based on my seriously fuzzy math, let’s say we are spending $2.8 trillion in marketing sans production. That’s some cheddar.
Of that amount, what percent do you think is spent creating an organizing principle that guides marketing? That allows employees and consumers to learn the unique value of a brand…and articulate it with meaningful language. Not taglines like “Chase what matters.”
The answer is not much.
Were we to take all the revenue of companies like Interbrand, Landor, Brand Union and Siegel+Gale and brand planning practices at agencies, we would find that it amounts to a milli-portion of the total. So we’re building brand with lots of people, lots of tools, lots of services and very, very little strategy. I’m having a brain freeze and not even eating ice cream. Peace.
PS. Getting to actual spending numbers would be a great econometric project for a business school student.