The Ad Market

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Most industry observers say the ad recession will end when corporate profits come back strongly enough to convince marketers to increase ad spending. Now the good news: Employees feel companies are improving, and most feel their employers will grow and be profitable in the next six months.

Intel in slide: Intel Corp. capped an already bad week with an announcement cutting its earnings guidance for the year. That took the market-already hurt by continuing fears of war and reports of a criminal probe of Tyco International's now-departed chief-into another losing session. A last-minute buying surge June 7-as bargain hunters crept back into the market-could not undo the damage. Only eight AdMarket stocks were up and 42 were down.

Media companies with TV properties benefited from the bullish reports out of the network upfront market (see story, at right), except for AOL Time Warner, which received a negative report from Lehman Bros. early in the week. Primedia hit a new low. Agencies were battered again. Omnicom Group was in an unusual position: A newcomer to the loser column as it slid on rumors (see P. 1).

Advertising Age and Bloomberg's AdMarket 50 index of 50 top publicly traded marketers, agency and media companies for the week ended June 7 based on stock trading data supplied by Bloomberg financial news service. All comparisons are vs. closing prices May 31.

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