Total adspend in the US rose 13.3% from $89.7 billion to $101.6bn last year, according to figures released by CMR (formerly Competitive Media Reporting), a research firm owned by Taylor Nelson Sofres
But figures for the fourth quarter confirm that advertising expenditure was slowing well before the end of 2000. Although the first three quarters witnessed respective increases of 16.3%, 17.5% and 15.1% compared to 1999, Q4 could only muster a 6.1% rise, with a measly 1% in December.
“The convergence of a robust economy, extraordinary dotcom spending, heated political ad campaigns and the Olympics brought about the industry's greatest increase in six years,” explained CMR’s president and chief executive David Peeler. “Of course, apprehensions of a possible recession were manifested in November and December, and we are certain to see that reserved spending trend continue in early 2001.”
The best-performing medium in terms of increased ad sales was network radio, which saw advertising income leap 105.6% from $463.48 million in 1999 to $952.89m. In second place came online advertising, which rose 53% from $1.89bn to $2.89bn.
The nation’s biggest advertiser remained General Motors, even though it decreased its adspend 2.5% from $2.96bn to $2.88bn.
News source: New York Times