• by Masha Geller , June 13, 2001

Not that we need to hear any more depressing news, but Competitive Media Reporting (CMR), announced this week that first quarter advertising spending for all media was down 5.2% for 2001, compared to first quarter revenues in 2000.

Total ad spending dipped from $23.8 billion in 2000, to $22.6 billion this year. Top advertisers included General Motors, spending $516.1 million, down 23.7% from last year, AOL Time Warner with $382.7 million, up 29% from last year, and DaimlerChrysler, spending $376.0 million, down 1.7% from the same period last year.

"With the economic challenges facing businesses and industries since late last year, this significant decrease in ad spending has not caught anyone by surprise," said David Peeler, president and CEO of CMR. "The advertising industry often strongly reflects what is happening in a majority of sectors. With Corporate America being required to make cuts across the board, it is logical to see a downturn in these numbers as well."

Despite this overall decline in numbers, cable TV and syndication both showed a healthy increase in revenues this quarter, up 6.6% and 5.5%, respectively. Outdoor also went up 4.6%. Magazines stayed nearly the same as did Sunday magazines, showing very slight increases.

But national newspapers took a cut with spending down 17.3% as did Sunday newspapers with a 11.4% decrease. Network radio went down 18.4%, and national spot radio and national spot TV ad spending was down 24.1 and 15% respectively.

Interestingly, CMR still does not include the Internet in its list of measured media.

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