• Bloomberg, Monday, September 21, 2009 10:11 PM

Les Moonves, CBS CEO, sees "encouraging signs" from the automobile industry, a major advertiser for the broadcaster. "The automobile sector is going to come back in spades," Moonves says. "Advertising is coming back."

An increase in spending by automakers would be a boon for CBS, after television ad sales slumped 13% in the second quarter. General Motors slashed ad spending 26% to $773.1 million in the first half of 2009, per TNS Media. Two-thirds of CBS revenue comes from advertising, Moonves says. Automotive is "probably the No. 1 sector" for TV and radio stations at CBS. Spending increases by Toyota and GM will be "extremely positive," Moonves says.

GM will "substantially" increase ad spending through 2011 and overtake competitors' spending, said GM Chairman Ed Whitacre this month. Toyota says it will spend a "larger than average" $1 billion on U.S. marketing in the fourth quarter as the country's economy begins to recover.

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