Advertising spending for all media fell 5.9% for the first half of 2001 compared to first-half revenues in 2000, according to the latest figures from CMR, a leading provider of strategic advertising
and marketing communication information.
CMR estimates that total ad spending for the first half of 2001 came in at just under $47.5 billion, compared to $50.4 billion for the same timeframe in
2000. Print media saw a significant drop-off in revenue for the first half of the year, with magazines down 4.5% and daily and Sunday newspapers down 6.6% and 10.4% respectively. Network and Spot
television continue to be impacted by the economic downturn, with declines of approximately 2% and 15% respectively, compared to the first half of 2000. Syndicated and cable television were the bright
spots, showing gains of 5.1% and 4.6% respectively.
"Second quarter results are not much of a surprise,'' said David Peeler, president and CEO of CMR.. "After we saw ad spending drop 5% during the
first quarter, we certainly did not expect an upswing during the second quarter. With the economy not showing near-term signs of rebounding, advertising will continue to fall victim to budget cuts
within Corporate America. Until the overall economy experiences a turn for the better, we cannot anticipate a positive change for the advertising landscape this year.''
AD SPENDING BY MEDIA: FIRST HALF 2000 VS 2001
MEDIA JAN-JUNE 2000 JAN-JUNE 2001
(Millions) (Millions) % CHANGE
NETWORK TV
$10,678 $10,430 -2.3%
MAGAZINES $8,480 $8,100 -4.5%
SPOT TV $8,417 $7,176 -14.7%
CABLE TV $5,278 $5,521
4.6%
SUNDAY NEWSPAPERS $5,355 $4,800 -10.4%
DAILY NEWSPAPERS $4,352 $4,065 -6.6%
SYNDICATION-NAT'L $1,539 $1,618 5.1%
NAT'L
NEWSPAPERS $1,604 $1,589 -1.0%
OUTDOOR $1,184 $1,220 3.1%
NAT'L SPOT RADIO $1,323 $1,027 -22.4%
SUNDAY MAGAZINES $531
$539 1.5%
NETWORK RADIO $466 $408 -12.5%
Source: CMR, a Taylor Nelson Sofres company
TOP
TEN AD SPENDERS: FIRST HALF 2000 VS 2001
COMPANY JAN-JUNE 2000 JAN-JUNE 2001
(Millions) (Millions) % CHANGE
GENERAL MOTORS $1,441 $1,102
-23.5%
PHILIP MORRIS $1,031 $863 -16.3%
AOL TIME WARNER $602 $734 21.9%
DAIMLERCHRYSLER $783 $715 -8.7%
PROCTER & GAMBLE
$708 $688 -2.8
FORD MOTOR CO $647 $652 0.8%
WALT DISNEY CO $529 $489 -7.6%
JOHNSON & JOHNSON $471 $479
1.7%
PEPSICO INC $425 $418 -1.6%
PFIZER INC $412 $405 -1.7%
Source: CMR, a Taylor Nelson Sofres company
Most of
the nation's top advertisers slashed their budgets during the first half of 2001. The top spender, General Motors, cut a significant 23.5% of its ad spending from the first half of last year, trimming
$1.4 billion down to $1.1 billion. Philip Morris, DaimlerChrysler and Walt Disney also dramatically cut spending. In sharp contrast, however, media giant AOL Time Warner upped its ad spending by over
20%.