CMR estimates that total ad spending for the first three quarters of 2001 came in at just over $68.8 billion, compared to $74.7 billion for the same timeframe in 2000. Clearly feeling the effects of losing $313.2 million worth of ad revenue during the week of the September 11 attacks, television took a major hit, with network TV down 8.0 percent and spot TV down 17.9 percent through the first three quarters. Print media was also hit hard once again. National newspapers saw the sharpest decline in ad revenues for the first three quarters of 2001, dropping 21 percent from a year ago. Magazine ad revenue fell 5.1 percent. Bright spots for 2001 continue to be cable television, which saw ad revenue jump 2.1 percent, and outdoor advertising with a 2.6 percent increase over 2000.

"The tremendous effects of the September 11 terrorist attacks, combined with an economy that has continued to spiral downward, had a significant impact on third quarter advertising," said David Peeler, president and CEO of CMR. "Even though the ad world may experience a slight holiday season boost in the fourth quarter, we don't expect to see spending numbers to turn around significantly until the economy does so first."

Ad Spending by Media: First Three Quarters 2000 vs 2001

Top Ten Ad Spenders: First Three Quarters 2000 vs 2001

As expected, most of the nation's top advertisers further cut their budgets during the third quarter of 2001. The top spender, General Motors, slashed 28.4 percent of its ad spending from the first three quarters of last year, reducing $2.2 billion down to $1.6 billion. Number two ad spender Philip Morris also dramatically cut spending by 20.6 percent during the first three quarters of year. The only top ten advertisers to increase their budget thus far in 2001 have been AOL Time Warner, up 11.9 percent, and Ford, up 5.4 percent.

About CMR
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 network of offices in more than 50 countries, Taylor Nelson Sofres provides marketing information services to leading national and multi-national companies operating in over 80 countries. It is ranked as the fourth largest marketing information group in the world. Further information on Taylor Nelson Sofres is available from the corporate Web site: http://www.tnsofres.com.

Editor's Note:
First Three Quarters 2001 Advertising Spending By Industry Category available upon request.

¹ Figures are based on CMR's Stradegy² multimedia ad expenditure database.