Agencies Predict More Ad Spending in 2012

Will 2012 be a better year for media sales? Yet another survey shows increasing optimism on the part of ad agencies. But not all media formats may grow as expected.

STRATA, a Chicago-​based media buying and selling software provider, regularly surveys agency clients to determine the advertising industry outlook. The firm’s latest survey finds the vast majority, 81%, of agencies are expecting their clients to maintain or increase advertising this year. Nearly 50% of agencies are looking for an improved financial picture for the first half of 2012, when compared to the end of 2011. As a result, 31% of agencies will be in hiring mode.

The survey also yielded surprising results regarding the types of media purchases demanded by clients at the end of last year.

Here’s what clients were most interested in:

  • Spot TV 51%
  • Digital 31% (down 11% from previous quarter)
  • Spot radio 8%

STRATA analysts also note that political spending will be significant this year and 60% of agencies expect an increase in this sector. Clients are well aware that they’ll have to compete with politicians for ad space. Candidates typically prefer spot and cable TV which will increase prices and shift the interest of competing marketers to digital. At the same time, politicians will turn their attention to digital and may merge their digital and traditional buys for efficiency. Politicians have discovered social media as well with 80% of agencies saying Facebook is the top outlet for candidates. But agencies don’t see much interest in mobile yet on the part of candidates with only 25% of politicians expected to invest in this channel.

[Sources: News Releases. Gotostrata​.com. January 2012. Web. 30 Jan. 2012] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.