Radio Ranks Third In STRATA Economic Recovery Study
October 20, 2010 at 4:27 AM (PT)
Economic recovery for agencies will slow as political ads dominate and digital advertising gains focus. This is according to the a Q3 study by STRATA. The survey, which follows advertising trends from leading agencies across the country, discovered that there has been a relapse in economic confidence -- 33% of advertisers don't anticipate the economy and their businesses to return to a strong growth period until at least mid-2011 and 47% are seeing their clients keeping the same budget as last year.
TV is the top advertising choice followed closely by digital, but a significant growth area this quarter was cable. 31.3% of respondents said they are more focused on cable than they were a year ago. The survey revealed that cable ranked second (behind TV) for political spending, followed by radio and Internet.
"The economy is not recovering as quickly as originally projected," said STRATA Pres./CEO JOHN SHELTON. "Even with the increase in political advertising, spending has been fairly stagnant this quarter. We have noticed that cross-platform advertising is prevalent, though, with nearly 47% saying they are doing more cross-platform advertising than ever before. Advertisers just don't buy TV or digital; they are utilizing both simultaneously to stay competitive."
For the first time in the STRATA poll, more agencies say they see no obstacle in increasing digital spending, where in the previous survey, the majority said the lack of advertiser demand was their largest obstacle.