Strata Q4 Agency Survey Show Ad Spending Climbs
| RADIO ONLINE | Thursday, January 26, 2012 | 5:34pm CT |
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Optimism returns to the media buying industry after showing impressive growth during Q4 2011, according to a new STRATA quarterly survey of advertising agencies. The industry is confident that ad spending will continue to rise in 2012. However, the survey noted that digital advertising was flat, while mobile is building momentum.
The STRATA Survey reveals that the top medium of choice for clients in Q4 was Spot TV (broadcast and cable) as reported by 51% of agencies surveyed. Digital was second at 31%, which is down 9% from third quarter 2011, followed by Spot Radio (8%). Spot TV (Broadcast) continues to be an area of interest as 28% of respondents said that they are more focused on it than a year ago, up 12% over fourth quarter 2010.
Additionally, STRATA found that 81% expect client approach to advertising and marketing to either increase or stay the same. This is up 14% based on the same figures reported Q3 2011. Nearly half of respondents said they project the first half of 2012 to be better than the last half of 2011 with increases in business compared to the same time last year. The impact shows 31% of agencies noted they plan on hiring in 2012, which is up 29% over Q3 2011 and up 28% over the same time last year.
The survey also found:
42% say their 2012 political ad spend will be more than 2010. 46% say that during the political season they will advertise in alternative mediums to avoid competition by politicians (41% will compete with politicians for space). 49% said they project the 1st half of 2012 to be better than the last half of 2011 (46% also see business increasing compared to the same time last year). 4% say that it will be 3-5 years before there is a greater spend in Digital than Traditional media (that's a 50% increase over 3Q 2011); but 38% still feel that shift will not ever happen. Android is the second most popular mobile advertising choice at 71%; iPad remains third (46%). For mobile advertising the top option is Display (46%) followed by SMS (25%, but up 61% since 4Q 2010). 44% are somewhat interested in self-service inventory of Digital assets. Only 4% said they are more focused on Print than they were a year ago.
"The key word for advertisers in 2012 is growth," said STRATA President/CEO John Shelton. "Agencies started to reap the benefits of balance sheets turned in their favor during the fourth quarter 2011, brokering a bright early 2012. The STRATA Survey shows that many advertisers are confident that their business and the economy will return to a strong period by midyear."
