The Ad Market

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Q: U.S. ad spending in 2001 a) fell 9.9%, marking the biggest year-on-year decline since 1933 or b) reached the second-highest level on record. A: Both-reflecting that the bust of 2001 followed the record boom year of 2000. There was an encouraging statistic amid the gloom: The downturn slowed down in the fourth quarter. After a 21.9% drop in September vs. a year earlier in the wake of ad-free 9/11 news coverage, the rate of ad spending decline dropped to 16.3% in October, 12% in November and 10.4% in December.

Jan.- Jan.-

Medium Dec. '01 Dec. '00 Change Dec. '01 Dec. '00 Change

Magazines $1,356.8 $1,594.1 -14.9% $16,476.4 $17,840.6 -7.6%

Sunday magazines $101.4 $100.4 1.0% $1,114.1 $1,126.2 -1.1%

B-to-B magazines $368.2 $506.2 -27.3% $5,747.6 $7,101.9 -19.1%

Newspapers $1,784.6 $1,831.9 -2.6% $18,429.9 $19,819.3 -7.0%

National newspapers $231.6 $296.3 -21.8% $2,947.1 $3,826.2 -23.0%

Outdoor $178.3 $204.4 -12.8% $2,456.4 $2,475.4 -0.8%

Network TV $1,699.9 $1,803.8 -5.8% $19,555.8 $21,271.2 -8.1%

Spot TV $1,375.8 $1,566.9 -12.2% $14,868.9 $18,171.2 -18.2%

Syndicated TV $257.8 $296.7 -13.1% $3,192.3 $3,188.3 0.1%

Cable TV networks $790.0 $754.0 4.8% $10,416.4 $10,315.9 1.0%

Network radio $75.9 $77.7 -2.4% $834.5 $953.6 -12.5%

National spot radio $191.9 $223.2 -14.1% $2,167.2 $2,723.6 -20.4%

Internet $173.2 $322.2 -46.2% $2,500.0 $2,930.0 -14.7%

Total $8,585.4 $9,577.9 -10.4% $100,706.6 $111,743.4 -9.9%

Notes: Figures in millions of dollars and include traditional and online media . All percent changes vs. same period previous year.

Source: Advertising Age analysis of data from Taylor Nelson Sofres' CMR

Markets perk up: More encouraging economic statistics are pointing to an end of the recession, and Bush administration officials made noises last week indicating maybe the recession call was wrong. Markets reacted with a surge that sent 31 AdMarket stocks up for the week; 18 were down and AT&T Corp. unchanged.

Agency and media stocks continue recovering as investors bought in-expecting better performance ahead in an improving economy-and cut back on recession-proof blue chip stocks. Havas Advertising performed well, in spite of reporting a net loss of $50.6 million for 2000; Publicis Groupe benefited from posting an 18% increase in net profit to $131 million for 2001 and the announcement of its deal with Bcom3 (See stories, P. 1 and 43).

Advertising Age and Bloomberg's AdMarket 50 index of 50 top publicly traded marketers, agency and media companies for the week ended March 8, based on stock trading data supplied by Bloomberg financial news service. All comparisons are based on closing prices March 1.

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