1H U.S. Ad Spending Sank 6%

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The bad news on Madison Avenue continues, as Competitive Media Reporting
estimated that total U.S. ad spending declined by 5.9 percent during the first
half of the year. However, cable was one of four sectors tracked by CMR that
posted an increase during the six-month period.

According to CMR figures, ad spending in the United States fell to $47.5
billion from January through June, compared with $50.4 billion during the same
span in 2000.

For its part, cable notched a 4.6 percent gain to $5.52 billion, up from the
$5.28 billion the medium generated during the first half of 2000.

Cable's growth rate was only outpaced by the syndication market, which posted
a 5.1 percent advance to some $1.62 billion, according to CMR's 'Stradegy2'
multimedia ad-expenditure database.

Outdoor (up 3.1 percent to $1.22 billion) and Sunday magazines (ahead 1.5
percent to $539 million) were the only other of the 12 segments measured by CMR
that scored increases.

Ad sales on network TV dropped 2.3 percent to $10.4 billion, while spot saw
ad revenues plunge 14.7 percent to $8.42 billion.

On a percentage basis, national spot radio suffered the steepest setback,
sustaining a 22.4 percent falloff to $1.03 billion, while network radio dropped
12.5 percent to $408 million.

The other segments that receded, according to CMR: magazines, a 4.5 percent
downturn to $8.1 billion; Sunday newspapers, a 10.4 percent decrease to $4.8
billion; daily newspapers, off 6.6 percent to $4.07 billion; and national
newspapers, a 1 percent dip to $1.59 billion.

'Second-quarter results are not much of a surprise. After we saw ad spending
drop 5 percent during the first quarter, we certainly did not expect an upswing
during the second quarter,' CMR president and CEO David Peeler said in a
prepared statement.

'With the economy not showing near-term signs of rebounding, advertising will
continue to fall victim to budget cuts within corporate America,' he added.
'Until the overall economy experiences a turn for the better , we cannot
anticipate a positive change for the advertising landscape this
year.'

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