STRATA Finds Some Good News As Advertising Economy Strengthens In Q1 2013
May 29, 2013 at 6:49 AM (PT)
Media buying agencies are experiencing major business growth and expect that growth to strengthen throughout the rest of the year, according to the latest quarterly survey conducted by STRATA.
The recent study revealed that almost half (48%) of agencies polled said business is increasing this year over the same time last year; while 39% expect to see more growth in the first half of 2013 than the second half of 2012. This growth has led to many shops expanding their business, as 39% plan on hiring this year (the largest amount since the first quarter of 2012). This is fueled by the fact that 28% say their clients are increasing their Marketing/Advertising budgets from last year.
Even with more cash available, advertisers continue to spend on core channels. Compared to all other media types -- TV was the most utilized avenue last quarter at 48%, followed by Digital (34%) and Radio (9%).
While these signs of an increase in business are encouraging, STRATA notes they do present unique challenges. Finding new clients has become a new difficulty for agencies, as 53% stated that client attraction is their biggest challenge (the highest number in the history of the STRATA survey and 49% higher than the first quarter of 2012). The second largest challenge was client spending (18%). However, most agencies are taking on this challenge by focusing more on business development (69%), and 47% say they will even expand into new advertising areas (such as streaming or online radio/TV).
"The advertising economy is back, thanks to the return of the big spenders. Home improvement, financial services and automotive companies are the driving forces, which is always a sign of a strong ad economy," said STRATA CEO/Pres. JOHN SHELTON.
Streaming/Online Radio also looked more promising in the survey, with 54% saying they are more interested in this than last year.