In another sign the recession is over, ad spending is expected to grow faster than gross domestic product this year for the first time in three years. Veronis Suhler Stevenson projects the improved economy and tougher global competion will help growth patterns continue.
WHAT'S UP: Stocks headed north last week, with the AdMarket 50 recovering most of the ground lost earlier in May as traders weighed mixed economic signals. Yahoo!, a top gainer, announced it's testing a free anti-spyware service. Publicis Groupe rose; it lost the $250 million Subway account and won the $150 million Zenith Financial Services business. For the week, 45 AdMarket stocks were up; only five fell.
The economy, measured by GDP, grew at a revised and healthy 4.4% in the first quarter. But there was considerable bad news on the economy: Corporate profit growth slowed; new-home sales in April saw the biggest percentage drop in 10 years; oil prices hit a record high; the University of Michigan's consumer confidence index fell.
Advertising Age and Bloomberg's AdMarket 50 index of 50 top publicly traded marketer, agency and media companies for the week ended May 28 based on stock trading data supplied by Bloomberg financial news service. All comparisons are vs. closing prices May 21. Full data available on Bloomberg terminals under index BAAX.