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A tally of advertising spending in various media shows that a rising tide does not always lift all boats.
While advertising spending increased in the first half of this year, growth was not uniform across all types of media. Dollars gravitated to traditional media like television and newspapers and away from the Internet (see chart, this page). For the remainder of the year, while there are some signs of further recovery, challenges remain especially for the Internet.
Trends in advertising spending can be gleaned from recent earnings reports from Silicon Valley-based companies such as Web portal Yahoo Inc., of Sunnyvale, and newspaper publisher Knight Ridder Inc., of San Jose.
Meanwhile, spending on television advertising is expected to grow this quarter as politicians try to reach voters in advance of the elections and as advertisers try to reach consumers in advance of the holiday shopping season.
Ad spending by the nation's top 10 advertisers has been down this year, but by a better-than-expected 0.2 percent, reports CMR, a New York City company that tracks ad expenditures. CMR reports an ad recovery is expected to begin in the fourth quarter or in the first quarter of 2003.
Election season boosts spending. Ad spending grows by an average of 15 percent in election years compared to nonelection years, CMR reports.
Election advertising on television should be particularly strong this year because of big races in the most populous states, says Gary Belis, vice president of communications for the Television Bureau of Advertising, of New...