From January to June of 2000, traditional media expenditures increased by 14.9% from $41.5 billion in the first 6 months of 1999 to $47.7 billion in 2000. Once again, General Motors led the way among parent companies spending $1.402 billion via traditional advertising outlets. However, this number is down 2.8% from the $1.442 billion the company spent for the same time period a year ago. McDonald's ranked as the top brand in ad spending with $314.9 million, a 5.7% increase from their $298 million spent in 1999. Among media outlets, cable networks led the growth with a revenue increase of 31.1%. Online and E-commerce companies, meanwhile, increased their traditional media ad expenditures by 188.8% from $213.5 million in 1999 to $616.5 million in 2000.

Internet advertising sector saw explosive growth as well. CMRi reported that overall Internet advertising expenditures increased 65% jumping from $789.6 million to $1.3 billion. More significantly, Internet ad spending crossed a milestone - 2.65% of all advertising expenditures - which is quite significant when compared to the 1.87% spent on Internet advertising expenditures this time a year ago. While there were several increases in overall Internet advertising, perhaps the most noteworthy change came from the Soft Drink industry, which reported a 16% decrease from $1.2 million for the first half of 1999 as compared to $965,846 spent for the same time frame this year.

Advertising by Industry and Category
Among the Industry Groups, the Automotive sector (spending $5.578 billion — a 2.4% increase over the first six months of 1999) narrowly bested Retail ($4.628 billion — a 15.3% increase). In overall growth, Computer Software saw an 87.7% increase with Media and Advertising coming in a distant second with 34.3% growth. Financial continued to rise, gaining 30.5% which was driven in large part by the online brokers. Telecommunications saw the smallest percentage gain with only a 2.8% rise compared to the same time period a year ago.

Factory Automotive advertising also led the way among the major categories with $4.246 billion a 4.1% increase followed by Financial Products and Services with $2.328 billion (a 33.8% increase). Telephone Companies and Services decreased their ad spending by 1.6% to $1.794 billion while Local Automotive Sales increased their advertising by 14% to $1.69 billion. Rounding out the top five is the Restaurant category with $1.67 billion in advertising spending.

Individual leaders
Behind General Motors, Philip Morris ranked as the second leading advertiser spending $889 million (a 29.2% increase from 1999) and DaimlerChrysler ranked third spending $783 million (a 6.5% increase from the first six months of 1999).

Among Individual brands, McDonald's and Burger King were once again numbers one and two, respectively, with 'The Golden Arches' spending $314.9 million - a 5.7% increase and Burger King spending $203.9 million - a 3.6% increase over the first six months of 1999. Circuit City which decreased their ad spending by 18.4% to $155.3 million remained in third place.

TNS Media Intelligence/CMR, is the leading provider of strategic advertising intelligence, serving 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.

See the attached January to June Industry Charts for select industry figures.
Industry Charts (Excel Spreadsheet 127K)

Editor's Note: Both CMR's traditional media and CMRi's Internet advertising information by specific industries, categories, companies and brands are available by calling The Prince Group — (212) 213-9060.