• by September 4, 2001

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%.