STRATA Identifies Advertising Trends in 2nd Quarter Agency Survey
August 1, 2011 at 4:40 AM (PT)
Advertising spending decreased during the second quarter, a reversal of positive spend during Q1, according to a new STRATA quarterly survey of major advertising agencies. However, continued investment and interest in Digital is on the rise.
STRATA found that optimism at the start of 2011 waned during the second quarter, with 17% of agency respondents noting a reduction in overall business (compared to a 38% jump during 1st quarter). TV is still the top form of traditional advertising, but Digital focus increased this quarter due to such major launches as Google+.
The STRATA survey suggests that TV is still tops for advertisers (41%), but the medium is steadily losing ground against Digital (24%), with Radio rounding out the top three advertising options at 13%. When asked about Digital focus at the agency level, 76% responded with more interest, which is up 9% over last quarter. Print advertising continued to struggle this quarter, with 56% of agencies saying they are less focused than a year ago.
Consistent with STRATA's first quarter survey, FACEBOOK leads Social Media for campaigns (81%), followed by TWITTER (39%) and YOUTUBE (36%). Newcomer GOOGLE+ is not only on agency radars, but 27% plan to use it on client campaigns.
"Advertising truly mirrors the economy right now. As consumers continue to tighten their belts, advertisers are doing the same, which even further emphasizes the importance of maximizing ad spend," said CEO/Pres. JOHN SHELTON. "It's important to keep these numbers in context, because we still see a promising trend of agencies planning to hire (33%). We also see advertisers exploring new affordable advertising avenues, like Digital and Radio, while the more expensive traditional platforms, like TV, are seeing a slight dip in spend. Even though its not all doom and gloom, national events continue to impact the fluidity of the advertising industry, and most agencies do not feel it will return to a strong growth period until after 2012."