Many marketers are putting on the brakes. In 2006, four of the top 10 U.S. advertisers cut spending. In the first nine months of 2007, six of the top 10 advertisers reduced measured-media spending, according to TNS Media Intelligence.
What happens if there's a recession? Ad spending would tighten but not necessarily decline; year-on-year drops are rare. For now, Wall Street generally likes what it's seeing from major marketers: In 2007, 16 of 26 marketer stocks on the Ad Age/Bloomberg AdMarket 50 index saw gains. That's in stark contrast to the AdMarket's media stocks (17 out of 19 issues down) and agencies (four out of five stocks down); media and agencies are in flux, and stocks have paid the price.
How will the AdMarket do in 2008? Sorry, no stock answers.
- 100 Leading National Advertisers
- Marketer Profiles Yearbook 2008
- Top 200 Megabrands
- 100 Global Marketers, including top advertisers in 90 countries
To order a copy of Annual 2008, Ad Age's Dec. 31 issue, call 1-888-288-5900.