Ad Spending Continues To Fall.

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 downtown, 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.”

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%.

Courtesy of http://Mediapost.com