US Ad Spend Will Rise By 1.5% in 2002, Says CMR
According to full year forecasts released today by CMR, US media spending will increase by 1.5% this year rising to $96.1 billion from a total of $94.6 billion in 2001. 2001 was a far weaker year than anyone expected with revenue dropping by an estimated 9.4% on the previous year. US ad revenue for 2000 totalled $104.5 billion, for 2001 the estimated total is $94.6 billion – the worst year on year comparison for ten years.
| 2001 V 2002 Quarterly Growth Trends | |
| Period | % Change |
| 1st Quarter 2001 | -4.1 |
| 2nd Quarter 2001 | -6.4 |
| 3rd Quarter 2001 | -12.1 |
| 4th Quarter 2001 | -14.4 (f) |
| 1st Quarter 2002 | -5.4 (f) |
| 2nd Quarter 2002 | -3.3 (f) |
| 3rd Quarter 2002 | 3.8 (f) |
| 4th Quarter 2002 | 10.9 (f) |
| Source: CMR, 22.01.02 | |
Returning to the spending patterns of H1 2000, internet advertising is set experience the greatest growth in 2002, CMR forecasts that internet ad spend will rise by 8.8% this year, way ahead of any other media. Events such as the elections in November in the US may help local media and spot TV and radio to achieve small gains but the outlook for network TV, cable TV and magazines is not bright.
| 2002 US Growth Estimates By Media | |
| % Growth | |
| Network TV | 2.0 |
| Spot TV | 2.5 |
| Cable TV | 1.1 |
| Syndication | 1.1 |
| Magazines | 0.6 |
| Newspapers | 3.1 |
| Outdoor | 1.8 |
| Internet | 8.8 |
| Source: CMR, 22.01.02 | |
“Looking back on 2001, the advertising industry felt the adverse effects of a souring economy, which took ad spending into the greatest slump we’ve seen in years,” said David Peeler, president and CEO of CMR.
“The events of September 11 coupled with the state of our economy certainly accelerated advertising’s continued decline for the remainder of the year. As our nation emerges from recession, we believe the worst is behind us and expect to see a slight industry rebound by the onset of the third quarter of 2002.”