2002 Online Ad Spend Drops

NEW YORK The Internet was one of the worst performing sectors in the media business in 2002, according to the latest figures from CMR/TNS Media Intelligence, with online ad expenditures declining 12 percent from the year before.

CMR, the New York-based company that tracks ad spending in major media, reported that Internet ad revenue was $5.7 billion for the year, down from $6.5 billion a year earlier.

Earlier this year, CMR predicted a rebound for the troubled sector, forecasting a 7 percent rise in Internet ad spending in 2003 [IQ Daily Briefing, Jan. 15].

Total ad spending for 2002 came in at $117.3 billion, up 4.2 percent from $112.5 billion in 2001. CMR attributed the overall growth to the elections, a strong network upfront and holiday spending.

All media categories, except business-to-business magazines, outpaced the Internet, in terms of spending growth for 2002. Ad spending for b-to-b magazines plummeted 14 percent from $8.4 billion in 2001 to $7.2 billion in 2002. Other categories posting declines included syndication-national (-8 percent) and national newspapers (-5 percent).

Spanish-language network TV and network radio recorded the greatest gains as ad spending in those categories grew 20 percent and 16 percent, respectively. Other media categories that reported year-over-year boosts in ad expenditures included spot TV (14 percent), national spot radio (13 percent), local radio (11 percent), Sunday magazines (11 percent), local newspapers (9 percent), network TV (7 percent), cable TV (3 percent), consumer magazines (2 percent) and outdoor (1 percent).