U.S. Ad Market Climbs: Up 2.2 Percent Through September 2002

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

News

November 18, 2002

U.S. Ad Market Climbs: Up 2.2 Percent Through September 2002
Positive Growth Remains Consistent with CMR/TNS Forecast Issued Earlier this Year

NEW YORK, November 18, 2002 - Advertising spending for all media rose 2.2 percent for the first three quarters of 2002 compared to the same time period for 20011, according to recent data and analysis from CMR/TNS Media Intelligence, a leading provider of strategic advertising and marketing communications information.

CMR/TNS Media Intelligence reports that ad spending for the first three quarters of 2002 totaled $84.4 billion, compared to $82.6 billion for the same timeframe in 2001. This year-over-year growth is attributable to several key factors: the elections, the strong upfront sales and a rebound from the September 11 tragedy, when more than $300 million in spending was lost in the television market. The largest spike in local advertising was for spot television (14.7 percent), followed by local radio (9.5 percent) and local newspaper (7.6 percent). Spanish language network television continues to be the most dynamic media, closely following national demographic trends: up 25.5 percent for the first three quarters of the year.

"Compared to the depressed levels of 2001, we have seen ad spending rebound nicely," said George Shababb, senior vice president CMR/TNS Media Intelligence. "We estimate that ad spending for 2002 will reach the 2.5 percent growth we forecasted earlier in the year. This is due to the additional ad dollars that were spent in November to support the final election push and the upcoming holiday season."

Ad Spending by Media: First Three Quarters 2001 vs. 2002

Media	January - September 2001 $(000)	January - September 2002 $(000)	% Change
Newspapers (local)	$13,375,314.61	$14,387,875.61	7.57%
Network TV	$13,425,449.60	$14,374,020.00	7.07%
Spot TV	$10,501,918.66	$12,041,496.02	14.66%
Consumer Magazines	$11,926,800.70	$11,759,225.35	-1.41%
Cable TV	$7,757,505.19	$7,682,008.80	-0.97%
B2B Magazines	$6,433,244.48	$5,313,734.14	-17.40%
Local Radio ²	$3,946,237.41	$4,322,820.46	9.54%
Internet ³	$4,589,600.50	$3,755,545.70	-18.17%
Syndication-National	$2,405,628.75	$2,122,062.86	-11.79%
National Newspapers	$2,183,015.63	$2,111,574.46	-3.27%
Outdoor	$1,856,241.90	$1,785,488.25 (e)	-3.81% (e)
National Spot Radio	$1,613,491.66	$1,712,164.08 (e)	6.12% (e)
Spanish Language Network TV ⁴	$1,131,537.70	$1,420,567.80	25.54%
Sunday Magazines	$815,571.09	$896,871.13	9.97%
Network Radio	$622,172.37	$711,255.48	14.32%

Source: CMR/TNS Media Intelligence
(e) = Estimate
¹ Figures are based on CMR's Stradegy2 multimedia ad expenditure database across all measured media, including: network TV, spot TV, cable TV, syndication, Spanish language network TV, consumer magazines, Sunday magazines, B2B magazines, newspapers (local), national newspapers, network radio, spot radio, local radio and outdoor.
Internet figures provided by Evaliant, a CMR/TNS Company.
² Local radio includes expenditures for 30 markets in the U.S.
³ Internet figures provided by Evaliant, a CMR/TNS Company
⁴ Spanish language network TV includes expenditures from Univision and Telemundo

General Motors Corp. remains the top ad spender for the first three quarters of 2002, even though spending by the automaker rose a modest 1.8 percent. Verizon Communications continued its strong push in the telecommunications industry showing the most significant increase in overall ad spending, up 36.9 percent. Other spenders include Proctor & Gamble Co. and Pfizer Inc., spending 21.2 percent and 15.3 percent respectively.

Top Ten Ad Spenders: First Three Quarters 2001 vs. 2002 ⁵

Company	January - September 2001 $(000)	January - September 2002 $(000)	% Change
General Motors Corp	$1,539,571.50	$1,567,943.41	1.84%
Procter & Gamble Co	$1,237,611.77	$1,500,172.34	21.22%
AOL Time Warner Inc	$1,033,723.81	$1,060,460.70	2.59%
Ford Motor Co	$928,470.63	$1,006,252.04	8.38%
DaimlerChrysler AG	$956,051.25	$841,050.31	-12.03%
Johnson & Johnson	$686,259.72	$790,949.90	15.26%
Philip Morris Cos Inc	$933,358.92	$772,837.98	-17.20%
Walt Disney Co	$713,566.36	$750,814.87	5.22%
Verizon Communications	$534,125.53	$731,403.82	36.93%
Pfizer Inc	$597,338.73	$688,614.66	15.28%

Source: CMR/TNS Media Intelligence
⁵ Total ad spending figures by company do not include expenditures for National Spot Radio, Outdoor, Local Radio and Internet

EDITOR'S NOTE: First three quarters 2002 advertising spending by industry category is available upon request.

About CMR
CMR/TNS Media Intelligence, offers strategic advertising and marketing communications information 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 one million brands across 15 media. CMR/TNS is headquartered in New York City and maintains sales locations in major markets throughout the United States.

Within the Taylor Nelson Sofres (TNS) organization, CMR/TNS stands as a key member of TNS Media Intelligence. This group, dedicated to worldwide media analysis, provides advertising expenditure tracking, evaluation and consultative services for broadcast, Internet and print media, in addition to news monitoring capabilities. TNS Media Intelligence is the market leader in the U.S. and France, with significant operations in Europe and Asia. For further information, visit http://www.cmr.com.

Through its international network of 230 offices in more than 50 countries, TNS provides market information services in over 100 countries to national and multi-national organizations. It is ranked as the fourth largest market information group in the world. Further information on TNS is available from the corporate Web site: http://www.tnsofres.com.