Advertising spending continued its recovery in October, helped in great part by record spending on political advertising. Local media, particularly spot TV and radio, got a big boost from the millions spent during the presidential campaign, while network TV suffered from a post-Olympic hangover. Meanwhile, business-to-business publications continued to recover ground slowly, as rising corporate confidence trickled down into corporate advertising budgets.
Cold snap freezes markets: Freezing weather drove a 2.6% spike in oil prices at week's end that put a chill on stock markets already cold ahead of an interest-rate hike expected next month. Only nine AdMarket stocks were up for the week, 39 were down and Kellogg Co. and News Corp. were unchanged.
Meredith Corp. rose after it announced a venture to launch its flagship Better Homes & Gardens in China (See P. 21), and a change in management at Interpublic Group of Cos. gave its stock a much-needed boost (see story, P. 3). Primedia rose after being upgraded by CSFB while Publicis Groupe slid after JPMorgan downgraded it, saying it is played out. Meanwhile, Yahoo dropped-in spite of a strong quarterly report-in the wake of disappointing results at eBay that dragged down Internet shares.
Advertising Age and Bloomberg's AdMarket 50 index of 50 top publicly traded marketer, agency and media companies for the week ended Jan. 21, based on stock trading data supplied by Bloomberg financial news service. All comparisons are vs. closing prices Jan. 14. Full data available on Bloomberg terminals under index BAAX.