Growth in marketing services spending will trail that of traditional media spending this year, but marketers will still put increased budgets into those efforts. Driven by event sponsorship and public relations, spending in the sector will rise 5.1% this year and growth will accelerate in coming years.
Oil, GDP Sock Stocks: Stocks rose, in spite of another surge in the price of oil and a disappointing economic growth report late in the week. Wall Street was encouraged by Federal Reserve Board Chairman Alan Greenspan's encouraging remarks to Congress early in the week, but investors were surprised by a lower-than expected second-quarter improvement in the gross domestic product. For the week, 29 AdMarket 50 stocks were up and 21 were down.
AT&T Corp. rose in spite of steering away from marketing residential phone service, but the decision hurt its agency, Digitas. Havas' stock rallied after reports that French investment group Bollore had acquired a stake of about 5%, and Yahoo! gained after Standard & Poor's upgraded its credit to investment grade.
Advertising Age and Bloomberg's AdMarket 50 index of 50 top publicly traded marketer, agency and media companies for the week ended July 30, based on stock trading data supplied by Bloomberg financial news service. All comparisons are vs. closing prices July 23. Full data available on Bloomberg terminals under index BAAX.