In the realm of entertainment, Walt Disney stands out among the unrivaled pioneers boasting popular brands that have helped it record exponential growth in recent years.
Behind the company’s growth is its advertising prowess which has consistently been allocated a significant budget.
In particular, according to data acquired by Finbold, Walt Disney’s advertising expenses showed a remarkable steady increase between 2018 to 2022, with the company spending $24.5 billion globally. The peak in advertising expenses occurred in 2022, reaching $7.2 billion, representing a staggering growth of approximately 157% compared to the initial value of $2.8 billion in 2018.
In 2021, the budget stood at $5.5 billion, and in 2020, the figure was $4.7 billion. Notably, the highest yearly growth rates occurred between 2018 and 2019, with a substantial increase of 53%.
Interestingly, this upward trend in advertising expenses aligns with Walt Disney’s revenue growth. As of Q2 2023, the company’s revenue amounted to $21.8 billion. The highest quarterly revenue was recorded in Q1 2023, reaching $23.51 billion. It is worth mentioning that over the past nine years, one of the lowest quarterly revenue figures was observed in Q3 2020, amounting to $11.78 billion at the height of the pandemic.
Marketing Disney’s diverse portfolio
The research report delved into the possible drivers behind the company’s advertising expenses. According to the research report:
“With a brand portfolio that includes Disney Studios, Pixar, Marvel, Lucasfilm, ESPN, and ABC, Walt Disney has an extensive reach across various entertainment sectors. This diverse portfolio has partly compelled the company to pump more funds toward its advertising budget. Indeed, with growing competition in the entertainment scene, advertising plays a crucial role in helping Disney maintain its competitive edge.”
Overall, Disney’s advertising dominance will likely continue to evolve as technology advances and consumer behaviors change. However, macroeconomic factors could affect their advertising budget and revenue.