Explain why there is variation in the percentage of sales spent on advertising among the four industries in the previous question.
Using the percent of sales method, an advertiser sets its budget at a certain percentage of current or forecasted sales. However, determining what percentage to use is not always clear. Many marketers look at industry averages and competitor spending for comparisons. Web sites and trade publications, such as Advertising Age, publish data about industry averages and advertising-to-sales ratios for top advertisers.