Advertiser Optimism Is On The Rise
July 15, 2010 at 5:18 AM (PT)
The news continues to get better -- albeit slowly --, as "advertiser optimism toward their media spending, which bottomed out a year ago, continues to rise and is now at the highest relative point since a well regarded research company began tracking it three years ago," reports MEDIAPOST.COM. "Nearly a third (32%) of ad executives now expect to increase their ad spending over the next 12-months, marking the greatest percentage since ADVERTISER PERCEPTIONS INC. (API) began asking that question in the SPRING of 2007."
Other analysts have also upgraded their opinions recently, with INTERPUBLIC MAGNA Global Director Of Forecasting BRIAN WIESER saying, "The answer is pretty simple. It's tightly related, but it's concurrent - not leading, not lagging. Between changes in virtually any economic variable and total advertising revenues are always concurrent (comparing same quarter to same quarter or same year to same year)," he said. "The correlations are much lower when you look at it on a lagging or leading basis, and whether you look one quarter or two quarters ahead or behind."
API partner KEN PEARL commented, "Advertiser optimism leads ad spending. Based on that, I think that advertisers are feeling better about the economy, or at least, more comfortable about the reality of economic uncertainty, which in either case will positively affect ad spending. We're moving in the right direction."
If that's true, notes MEDIAPOST, "it should be good news for all the media, because the sentiment among ad executives is improving for every single medium, even supposedly business model challenged ones such as newspapers, magazines and radio."