Ad Spending up by 13.3% in 2000; Fourth Quarter Growth Lags at 6.1%

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Contact:
Matt Biscuiti
Golin/Harris International
(212) 373-6044
mbiscuiti@golinharris.com

News

March 20, 2001

Ad Spending up by 13.3% in 2000; Fourth Quarter Growth Lags at 6.1%

CMR, the leading provider of strategic advertising and marketing communication information, announced today that U.S. advertising expenditures for 2000 reached $101.6 billion - a 13.3% increase over the $89.7 billion spent in 1999. While advertisers exhibited strong growth through the first nine months of the year, fourth quarter spending slowed to 6.1% over the same time period of the previous year.

First Quarter 1999	$20,018,566,529
First Quarter 2000	$23,272,678,653
16.30%
Second Quarter 1999	$22,234,332,975
Second Quarter 2000	$26,133,790,440
17.50%
Third Quarter 1999	$20,760,759,143
Third Quarter 2000	$23,905,180,061
15.10%
Fourth Quarter 1999	$26,665,091,479
Fourth Quarter 2000	$28,295,794,525
6.10%
Full Year 1999	$89,678,750,126
Full Year 2000	$101,607,443,679
13.30%

Advertisers' fears of slowed economic growth were most strongly illustrated in December of 2000 when overall spending increased by just 1.0% over December of 1999 - $8.779 million to $8.688 million. Cable television suffered the brunt of advertisers cuts in the fourth quarter; down -3.9% for the quarter and a staggering -12.2% in December alone.

"The year 2000 was most certainly a banner one for advertisers, agencies and the media," said David Peeler, President and CEO of CMR. "The convergence of a robust economy, extraordinary dot.com spending, heated political ad campaigns, and the Olympics brought about the industry's greatest increase in six years. 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."

Leaders

While automotive manufacturers continued to lead all the major categories in ad spending, the financial services companies, fueled in large part by their interactive extensions, far outpaced overall growth.

Categories	2000	1999	% Change
Cars & Light Trucks, Factory: Sls & Lsg	$8,828,009,321	$8,429,779,599	4.70%
Financial Products & Services	$4,612,771,902	$3,872,799,953	19.10%
Telephone Companies & Services	$3,960,959,681	$3,693,389,104	7.20%
Car & Truck Dealers: Sales & Leasing	$3,582,725,115	$3,095,584,783	15.70%
Restaurants, National	$3,444,437,813	$3,226,052,389	6.80%

With strong interest in the DTC drug industry, pharmaceutical companies continued to take their message to the mass audience. Spending in this segment saw a 41.8% increase from $1.606 billion in 1999 to $2.277 billion in 2000. The top spending parents and brands included:

DTC Parents	2000	1999	% Change
Mwrck & Co Inc	$62,708,617	$44,632,575	40.50%
Bristol-Myers Squibb Co	$41,480,447	$8,955,225	363.20%
American Home Pdts Corp	$34,129,562	$15,875,750	115.00%
Roche Holdings Ltd	$33,576,045	$27,266,234	23.10%
Pharmaceutical Research/America	$22,638,708	$23,409,900	-3.30%

DTC Brands	2000	1999	% Change
Vioxx Osteoarthritis Rx	$160,800,300	$18,119,792	787.40%
Prilosec Heartburn Rx	$109,015,378	$81,225,959	34.20%
Claritin Allergy Rx	$100,489,964	$125,356,247	-19.80%
Paxil Anti Depression Rx	$91,798,400	$31,513,200	191.30%
Zocor Cholesterol Rx	$91,249,000	$35,853,262	154.50%

Among all parent companies, General Motors, despite an overall decrease of -2.5% headed the list yet again and was followed by DaimlerChrysler, Procter & Gamble and Philip Morris.

Parent Companies	2000	1999	% Change
General Motors Corp	$2,883,214,638	$2,958,443,914	-2.50%
DaimlerChrysler AG	$1,671,764,133	$1,517,537,125	10.20%
Procter & Gamble Co	$1,542,847,298	$1,757,819,364	-12.20%
Philip Morris Cos Inc	$1,538,040,118	$1,372,393,762	12.10%
Time Warner Inc	$1,318,081,715	$1,089,488,175	21.00%

Among brands, McDonalds not only maintained it ranking as the top spending brand by increased by margin between itself and Burger King. The Golden Arches outspend Burger King by 55.9% in 1999 and by a staggering 72.3% in 2000.

Born out of the merger of Bell Atlantic and Nynex, Verizon Wireless Services jumped from a non-existent brand in 1999 to one of the year's top spenders. Of course, Bell Atlantic Mobile did spend $36.5 million in 1999 so the Verizon brand had a base from which to start.

Brands	2000	1999	% Change
McDonalds Restaurant	$662,394,197	$624,161,832	6.10%
Burger King Restaurant	$384,421,124	$400,432,400	-4.00%
Circuit City Stores	$351,391,562	$423,139,500	-17.00%
Verizon Wireless Service	$328,917,902	0	NA
Best Buy Electronic Store	$276,084,180	$252,605,500	9.30%

TNS Media Intelligence/CMR, offers strategic advertising intelligence to advertising agencies, advertisers, broadcasters and publishers. The company's tracking technologies collect occurrence and expenditure data, as well as the creative executions of over 900,000 brands across 15 media. CMR is headquartered in New York City and maintains sales locations in major markets throughout the United States. For further information, visit http://www.cmr.com.

Through its international network of more than 150 offices in over 40 countries, Taylor Nelson Sofres provides market information services in over 80 countries to national and multi-national organizations. It is ranked as the fourth largest market information group in the world. For further information, visit http://www.tnsofres.com.

Editor's Note:
The attached files illustrate the media breakout by quarter and for the last three months of the year: Full Year 99-00 and by Quarter (20K).