The Advertising Age/Money.com AdMarket 50 index of advertising, marketing and media stocks outperformed the Dow Jones industrial average in the weeks since both indexes hit their peaks on July 17 -- before beginning their recent gyrations and sinking below the Dow late last week..
The AdMarket 50 index dipped from a high of 1,298.42 July 17 to 1,063.62 Aug. 31, as the Dow Jones industrial average took a historic 512-point dive. The AdMarket 50 went on to recover Sept. 1, to close at 1,100.19, as the Dow surged 288.36 points.
MARKETERS HOLD UP BETTER
By Sept. 4, however, the AdMarket 50 had lost 18.9% since July 17, closing at 1,052.58, compared to an 18.2% loss for the Dow, which closed down 41.97 points at 7,640.25.
Marketers' stocks fared better in the downturn than the market average, while agencies and media companies were hit harder.
Agency stocks closed down 19.4% Sept. 3, at 1,101.85, compared to 1,366.79 July 17, when the Dow closed at an all-time high of 9,337.97 points. Marketers were down 14.2% to close at 1,084.09 and the media sector dropped 19.8% to close at 1,014.43.
Agency stocks had held up better than both indexes and all other AdMarket 50 sectors for the first two months of the quarter, but brand marketers fared best in the down days since the July 17 peak.
The agency sector lost only 11.3% between July 1 and Aug. 31, compared to a 16.7% loss for the Dow and 13.9% for the AdMarket 50. During the same period, marketers lost 12.7% and media companies 17.8%. Since July 17, however, the marketer sector -- made up of blue-chip stocks such as Procter & Gamble Co., Coca-Cola Co. and General Motors Corp. -- lost more than 14%, compared to over 19% for the agencies and almost 20% for the media companies.
The AdMarket 50 stock market index, a print and online index of the top 50 publicly traded marketing and media companies, is compiled by Time Inc. New Media's Money.com. Ad Age's Web site, adage.com, offers continuous updates as well as a full list of the AdMarket 50 with the latest stock information and links to the financial profiles of each company.