U.S. measured ad spending grew a robust 8% in May, the biggest year-on-year gain since December and a turnabout from the weak single-digit gains of February, March and April. All media grew except spot TV and network radio.
Focus on: Nike (NKE)
Adidas, the No.2 global player in the sneaker and apparel market, is purchasing Reebok, the No.3 company in worldwide sales. Yet No.1 Nike just keeps rolling along. The company gained $1.12 after the Aug. 3 announcement as investors apparently weren't impressed by the news. Though Nike's stock has dropped about $7 since CEO William Perez took over for Phil Knight last year, it still has a double-digit market share advantage on its competitors -even a combined Adidas and Reebok.
1. Currrent price/estimated earnings per share for year ending May '06. 2. Market cap plus debt minus cash 3. YE May '05
Source: Bloomberg, company reports, Ad Age analysis
Last week's score
The AdMarket was up 1% for the week; media companies stayed strong. Otherwise, a tough week for most; 17 stocks were up and 33 were down.
Advertising Age and Bloomberg's AdMarket 50 tracks 50 top marketer, media and agency companies. Bloomberg symbol: BAAX