BUSINESS

Coca-Cola Spent $4.24bn for Advertising in 2019, $20bn in the Last 5 Years

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Giant beverage manufacturer The Coca-Cola Company (NYSE: KO) spent a record of $4.24 billion on global advertising in 2019 alone. Learnbonds.com data also shows that the company spent $20 billion on advertising in the past five years.

The majority of Coca-Cola’s advertising budget is used in print, radio and television advertisements, as well as marketing campaigns, point-of-sale merchandise and sales promotion.

Coca-Cola spens on average $4 billion per year advertising in the past six years. The advertising budget is global, but the United States accounts for around 20%.

Coca-Cola spent $4.11 billion in advertising and marketing in 2018, an increase of 3.6% over the $3.96 million spent in 2017. Comparable to 2016, Coca-Cola’s advertising budget was $4 billion.

Coca-Cola’s 2015 advertising budget was $3.98 Billion, which is a 12% increase over the $3.5 Billion used in the previous year.

Coca-Cola’s advertising budget is huge because of the creative and attractive advertising campaigns it runs. Advertising has made Coca-Cola one of the most valuable brands in the world.

Coca-Cola has always been known through traditional advertising channels. However, recently the company has begun to use social media platforms such as Facebook and YouTube. The company’s YouTube channel, for example, has received over 2 billion views.

Coca-Cola’s net operating income increases by 7.9%

Coca-Cola’s 2019 advertising budget of $4.2 billion reflected the increased net income at the end. The American company had a net operating profit of $37.6billion last year, with $10.08billion in operating income. This was a 7.9% increase over the $34.3 billion that was recorded in 2018.

After taking all income from operations into consideration and subtracting any expenses, net operating income is the annual income that an income-producing business generates. Operating income, on the other hand, is the profit realized by a business after subtracting operating expenses like wages, depreciation and cost of goods.

Coca-Cola’s net operating income was $447.455 Billion between 2009 and 2019. Operating incoming stood at $101.879 Billion.

Coca-Cola’s 2018 net operating income was $34.3 billion. This is a 5.2% drop from 2017’s $36.212 billion.

2016 was the last year Coca-Cola had a net operating profit of more than $40 billion. The income for this period was $41.863 billion, a decrease of 5.4% from $44. In 2015, 294 billion.

Coca-Cola’s 2014 net operating income was $45.998billion, a decrease of 1.8% from the $46.854billion recorded in the previous year.

In 2013, Coca-Cola registered $46.854 trillion in net operating income. This was a decline of 10% over the past decade. It registered $48. This represented a 2.4% drop. This was notable because Coca-Cola’s highest net operating income over the past 10 years was 017 billion.

Coca-Cola’s greatest net operating income growth occurred between 2010 ($35.11 Billion) and 2011, ($46.542 Billion) periods. The net operating income increased by 24.5%. Coca-Cola’s 2009 net operating income was $30.99 billion, which is the lowest ever recorded.

Coca-Cola had 150,900 employees in 2012, the year when it posted the highest net operating profit. The lowest number of employees at Coca-Cola between 2007 and 2019 was in 2017, which was 61,800.

The number of Coca-Cola workers declined from 2013 to 2018. The company employed 130,600 people in 2013. By December 31, 2018, it had 62,600. This represented a 52% decrease.

Concerns about environmental pollution in packaging by Coca-Cola

Coca-Cola’s product line includes non-alcoholic beverages like soft drinks, bottled waters, sports drinks, energy drinks, and bottled water.

For many years, Coca-Cola’s dominance in the soft drink market has been unquestioned. Coca-Cola faces a difficult task in reducing environmental pollution from its plastic bottles. Recent research shows that Coca-Cola cans and bottles are the most common items of litter found on British beaches. They account for 12%.

Coca-Cola insists it will continue to use plastic bottles, despite consumers preferring them. Coca Cola is now launching a recycling program with Sweden as the first country to participate. Coca-Cola will start making all its plastic bottles entirely from recycled material by 2020.

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