Study: DM Shines Among Ad Groups

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Advertising spending in the United States dropped 7 percent to $143 billion last year, with direct response one of the few bright spots, according to a study released Friday by Nielsen Media Research's international division, New York.


Direct response spending rose 18 percent overall. When broken down, direct marketing by hotels and restaurants was up 13 percent, records and tapes 21 percent, schools and camps 15 percent and liquor 4 percent.


By contrast, advertising volume in the telecommunications industry plummeted by 28 percent and in professional services by 15 percent. Retail advertising spending dipped 9 percent, financial services fell 6 percent and automotive dropped 4 percent.


Nielsen Media Research said the rise in the number of infomercials selling products ranging from music CDs to exercise equipment made direct response one of the best-performing categories nationwide in 2001.


The firm said the country shows signs of recovering from its media recession. Ad sales in the first quarter of this year rose 1.8 percent. Network television shows growth, though magazines are still down. Overall, the country this year could see 2 percent growth in ad spend.


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