10 Big Social Media Ad Spenders To Watch

One way to determine the health of a company is its level of advertising spending. Companies facing strong product demand should also generate higher profits: profits which may be used to advertise. This generalization is not foolproof, but is a starting point for investors looking for evidence of a healthy, growing, company.

Advertising spending levels are also an indicator for economic health. When the economy is growing, companies often increase spending. Internet companies like Google (GOOG) report higher advertising revenue. Broadcasting companies like CBS (CBS) and Disney (DIS) also prosper from clients with higher advertising revenue.

To highlight an example where ad spending did not indicate a product at the start of its growth phase, take a look at Research in Motion (RIMM) back in the 2007-2010 timeframe. RIM spent heavily to advertise a Blackberry Torch, a device that was hoped to be competitive with the Apple (AAPL) iPhone. The Playbook was advertised heavily but it, too, failed to compete effectively with the iPad and later, the Kindle Fire. RIM may boost advertising for its Blackberry 10 later this year.

A recent analysis on when RIM might reach $10 is available here.

A combination of technological innovation and effective advertising will matter more for RIM in late-2012. Until then, there are other companies to look at. These companies were the biggest social media advertisers of 2012, as reported by Business Insider.

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The top 10 publicly traded companies with the highest social media advertising are listed below. These companies advertised on Facebook (FB), LinkedIn (LNKD), Twitter, Tumblr, MySpace, Pinterest, and DeviantArt in 2012 (up until August 2012).

1. Kellogg Company (K, Earnings, Analysts, Financials): Kellogg Company and its subsidiaries manufacture and market ready-to-eat cereal and convenience food products primarily in North America, Europe, Latin America, and the Asia Pacific. Market cap at $18.57B, most recent closing price at $51.90. 1.89 billion impressions

2. Comcast Corporation (CMCSA, Earnings, Analysts, Financials): Provides entertainment, information, and communications products and services in the United States and internationally. Market cap at $95.9B, most recent closing price at $35.84. 1.89 billion impressions

3. Dell Inc. (DELL, Earnings, Analysts, Financials): Provides integrated technology solutions in the information technology (IT) industry worldwide. Market cap at $17.17B, most recent closing price at $9.90. 1.9 billion impressions

4. American Express Company (AXP, Earnings, Analysts, Financials): Provides charge and credit payment card products, and travel-related services worldwide. Market cap at $64.82B, most recent closing price at $57.18. 1.97 billion impressions

5. Activision Blizzard, Inc. (ATVI, Earnings, Analysts, Financials): Publishes online, personal computer (PC), console, handheld, and mobile games of interactive entertainment worldwide. Market cap at $12.34B, most recent closing price at $11.11. 2 billion impressions

6. eBay Inc. (EBAY, Earnings, Analysts, Financials): Provides online marketplaces for the sale of goods and services, as well as other online commerce, platforms, and online payment solutions to individuals and businesses in the United States and internationally. Market cap at $62.37B, most recent closing price at $48.40. 2.07 billion impressions

7. General Electric Company (GE, Earnings, Analysts, Financials): Operates as a technology, service, and finance company worldwide. Market cap at $240.64B, most recent closing price at $22.79. Through NBC Universal holding: 2.12 billion impressions

8. Intuit Inc. (INTU, Earnings, Analysts, Financials): Provides business and financial management solutions for small and medium-sized businesses, consumers, accounting professionals, and financial institutions in the United States, Canada, India, and the United Kingdom. Market cap at $17.68B, most recent closing price at $59.85. 2.17 billion impressions

9. Toyota Motor Corporation (TM, Earnings, Analysts, Financials): Engages in the design, manufacture, assembly, and sale of passenger cars, minivans, and commercial vehicles. Market cap at $132.49B, most recent closing price at $76.85. 2.34 billion impressions

10. Verizon Communications Inc. (VZ, Earnings, Analysts, Financials): Provides communication services. Market cap at $130.65B, most recent closing price at $45.86. 2.38 billion impressions

Written by Chris Lau. Disclosure: Author may initiate a long position in Research in Motion (RIMM).

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Dig Deeper: Access Company Snapshots, Charts, Filings

• Kellogg Company (K, Chart, Download SEC Filings)
• Comcast Corporation (CMCSA, Chart, Download SEC Filings)
• Dell Inc. (DELL, Chart, Download SEC Filings)
• American Express Company (AXP, Chart, Download SEC Filings)
• Activision Blizzard, Inc. (ATVI, Chart, Download SEC Filings)
• eBay Inc. (EBAY, Chart, Download SEC Filings)
• General Electric Company (GE, Chart, Download SEC Filings)
• Intuit Inc. (INTU, Chart, Download SEC Filings)
• Toyota Motor Corporation (TM, Chart, Download SEC Filings)
• Verizon Communications Inc. (VZ, Chart, Download SEC Filings)

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