AdD IT UP: U.S. ad spending rose in July for the third consecutive month, but once again gains were a result of easier comparisons to 2001's numbers. For the first time in 2002, total year-to-date spending is up vs. last year. July consumer media spending was virtually flat compared to the boom year of 2000. Year-to-date, only newspaper, network TV and Sunday magazine spending is above 2000's levels.
Changes in the AdMarket: For the first time since the introduction of the AdMarket 50 in 1998, Advertising Age has rebalanced the stock index to provide a wider, more representative cross-section of marketer and media companies. Package-goods marketers Revlon and H.J. Heinz have been replaced by Yum Brands (KFC, Pizza Hut, Taco Bell) and hotelier Marriott International (Marriott, Renaissance, Ritz-Carlton). Among media and agencies, direct-marketing company Catalina Marketing Corp. (Checkout Coupons) and General Electric Co. (both a major advertiser and parent of NBC) replace technology consultant Sapient and publisher McGraw-Hill Cos. Additionally, the Standard & Poor's 500 Index replaces the Dow Jones Industrial Average as a benchmark to provide a more accurate comparison with broad stock market activity.
For the week, 34 AdMarket stocks were up and 16 were down as the market snapped a six-week losing streak after scraping a five-year low earlier in the week.
Advertising Age and Bloomberg's AdMarket 50 index of 50 top publicly traded marketer, agency and media companies for the week ended Oct. 11 based on stock trading data supplied by Bloomberg financial news service. All comparisons are vs. closing prices Oct. 4.