US Ad Revenue Falls 9.8% In 2001, Although Comparables Are Harsh, Says CMR

CMR estimates that total ad spending for 2001 came in at $94.3 billion, compared to $104.5 billion for the same period in 2000. Hit by a faltering economy in the US, ad spending significantly dropped in revenues across the majority of measured media.

National newspapers and national spot radio saw the sharpest decline, of 23.0% and 20.5% respectively. Print media also saw a significant drop in revenue: Magazines fell 7.7% and Sunday and daily newspapers dropped 7.6% and 6.3% respectively.

Television was not excluded from 2001’s budget cuts, with network TV down 8.1% and spot TV down 18.2%. The only bright spot for 2001 in the US continued to be cable television, which saw a modest ad revenue increase of 1.0%, according to the CMR report.

AD SPENDING BY MEDIA: FULL YEAR 2000 vs. 2001
	JAN-DEC 2000 ($m)	JAN-DEC 2001 ($m)	% CHANGE
Network TV	21,195	19,477	-8.1
Magazines	17,840	16,476	-7.7
Spot TV	18,171	14,869	-18.2
Cable TV	10,316	10,416	1.0
Sunday Newspapers	11,366	10,507	-7.6
Daily Newspapers	8,453	7,923	-6.3
Syndication-National	3,188	3,192	0.1
National Newspapers	3,826	2,947	-23.0
Outdoor	2,475	2,456	-0.8
National Spot Radio	2,724	2,167	-20.5
Sunday Magazines	1,126	1,114	-1.1
Network Radio	954	834	-12.6
Source: CMR, a Taylor Nelson Sofres company

Tough comparables “Looking back, 2001 was an extraordinary year for the advertising industry – the downward turn in the economy, budget cuts, agency consolidations and the tremendous cuts in television advertising in the days following September 11,” said David Peeler, president and CEO of CMR.

“Because 2000 was such a banner year in ad spending for advertisers, agencies and the media, a fair year-over-year comparison cannot be drawn for total 2001 spending. If 2000’s robust total revenues were excluded, and 2001 were measured against 1999, spending would be down only 2.4%. That seems to be a better assessment of our year than the 9.8% decline between 2000 and 2001.”