Advertising Spending Down 5.9% So Far

Overall advertising spending during the first half of 2001 fell by 5.9% to $47.5 billion, down from $50.4 billion during the same period a year earlier, according to CMR, a New York-based advertising and marketing research firm. Sales of advertising in the spot television market, Sunday newspaper, national spot radio and network radio categories suffered double-digit drops, according to CMR. Only the cable television, Sunday newspaper magazine and outdoor billboard categories managed to report gains.

General Motors Corp., the nation’s largest single advertiser, cut its spending to $1.1 billion, down from $1.4 billion a year ago. “With the economy not showing near-term signs of rebounding, advertising will continue to fall victim to budget cuts within corporate America,” said CMR President and Chief Executive David Peeler. “Until the overall economy experiences a turn for the better, we cannot anticipate a positive change for the advertising landscape this year.”