New study: agri-marketers invest over $600mm annually.

by the AgriMarketing editors

Last year, organizations supplying products and services to ag producers invested $615,150,000 in their marketing and communication activities (see Table #1), according to a new survey AgriMarketing magazine recently conducted.

The purpose of the study is to provide the ag industry with an estimate on its annual investment. In June, a survey questionnaire was emailed to a representative of the 146 largest agribusinesses. A total of 53 (36%) usable returns were received. No incentive was included.

In addition, data was gathered from 23 other agribusinesses via telephone interviews. The following data has been reviewed by individuals in the industry who are recognized as experts in the agri-marketing profession.

For a further analysis of the study, please see page 5.

ESTIMATED ANNUAL EXPENDITURES

Table 1

                                             Est. Annual     % of
                                                Total        Total

Advertising: (Media only, includes Nat'l,
Reg'l and Co-op)
  Print                                      $182,650,000     29%
  Radio                                        53,200,000      9
  TV                                           43,050,000      7
  Web sites                                     9,350,000      3

Public Relations                               58,500,000      9

Direct Marketing                               42,600,000      7

Collateral                                     50,000,000      8

Their organization's Web site                  29,100,000      5

Incentive Merchandise/Dealer & Customer
  Travel                                       69,100,000     11

Farm/Trade Shows                               45,800,000      7

Market Research                                31,800,000      5

Total                                        $615,150,000

PRODUCT LINES

Table 2
Which products/services are you primarily
responsible for? (percent of companies
responding)

Field Equipment/Accessories                 17%
Plant/Soil Nutrients (fertilizer, etc.)      4%
Crop Protection Products                    15%
Seed/Traits                                 19%
Animal Health/Feed/Genetics                 16%
Farmstead/Grain Handling/
  Water Mgt                                  4%
Livestock Equipment/Structures
  (including Dairy)                          4%
Ag Financial Services
  (Bank, Farm Credit, etc.)                  7%
Insurance                                    4%
Trade Association/Checkoff                   4%
Other                                        6%

TOTAL EMPLOYEES

Table 3
Approximately how many total employees does
your organization have in its agricultural
operations working in the U.S. market?
(percent of companies responding)

500+                                        36%
200-499                                     26%
100-199                                     21%
50-99                                        8%
Less than 50                                 9%

SALES EMPLOYEES

Table 4
Approximately how many sales
employees does your organization have
in its agricultural operations working in
the U.S. market? (percent of companies
responding)

500+                                         8%
200-499                                     13%
100-199                                     15%
50-99                                       21%
Less than 50                                43%

ANNUAL SALES

Table 5
Approximately what are your organization's
annual sales to the U.S. agricultural
market? (percent of companies responding)

Over $1 Billion                             25%
$500 Million to $999 Million                 6%
$100 Million to $499 Million                31%
$50 Million to $99 Million                  12%
$10 Million to $49 Million.                 17%
Less than $10 Million                        9%

OUTSOURCING WORK

Table 6
What percent of your marketing communications
campaigns/projects (including advertising,
sales promotion, direct marketing,
e-marketing) are planned, created
and implemented by internal staff or by
external agencies? (percent of work)

Done Internally                             49%
Outsourced to an Agency                     51%