After retrenching during this recession, advertising will resume growing in 2003, according to media merchant bank Veronis Suhler Stevenson’s analysis. Marketing services spending will grow this year to $141.9 billion to top 2000’s spending, while traditional advertising will be just below 2000’s record numbers, at $177.6 billion. The bankers are forecasting momentum will pick up in 2004, as Internet advertising resumes growth, business-to-business publishing finally recovers from its two-year slump and radio industry consolidation pays off in ad sales.
Source: Veronis Suhler Stevenson Communications Industry Forecast, July 2003
Investors cash it in: The stock markets rallied early in the week, after a raft of positive earnings reports from retailers and rising retail sales reports buoyed investors with hopes of a consumer-led recovery. But many investors sought to cash in their gains at week's end and a late-week rally-sparked by a bullish forecast from Intel Corp.-fizzled in a late-day sell-off. For the week, 30 AdMarket stocks were up and 20 were down.
Agency and media stocks mostly held on to their gains from previous weeks. On the down side, Walt Disney Co. tumbled after vice-chairman Roy Disney-Walt's nephew and the company's biggest shareholder-put 40% of his stake up for sale. Among marketers, an earnings warning from Schering Plough brought down the pharmaceutical sector, while Intel's good news boosted tech stocks.
Advertising Age and Bloomberg's AdMarket 50 index of 50 top publicly traded marketer, agency and media companies for the week ended Aug. 22, based on stock trading data supplied by Bloomberg financial news service. All comparisons are vs. closing prices Aug. 15. Full data is available on Bloomberg terminals under index BAAX.