As marketers struggle with a sagging economy and the transformation of advertising platforms, big changes are apparent for media buyers. More marketers and their agencies are cutting back on advertising and shifting resources into digital formats. Within the digital sector, budget allocations are changing as well as more media channels enter the fray.
The news from STRATA’s quarterly ad agency survey shows 17% of respondents indicated a drop in business during the second quarter this year. “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 John Shelton, STRATA CEO/President.
To stretch advertising dollars, marketers and agencies are focusing on digital. The top 3 ad formats according to this survey are TV, digital and radio. Over ¾’s, 76%, report more interest in digital while 56% see less interest in traditional print when compared to last year.
Social media remains a big focus for advertisers. While Facebook is still the leader with 81% of advertisers buying in, Twitter and YouTube both score over 30%. Google+ hasn’t been around for long but 27% of agencies will be using the tool for client campaigns. And for all of the buzz about location-based advertising, marketers have been slow to invest in this channel. The STRATA survey reveals that 68% of agencies aren’t using this tool currently and don't plan to for the rest of the year.
Shelton emphasizes that agencies are looking for affordable channels and that explains the increasing interest in digital and radio formats. In addition, many industry experts are saying that a full growth scenario won’t take place until 2013.[Source: Ad Spending Slips; Digital Gains More Focus. Strata.com. 28 Jul. 2011. Web. 30 Aug 2011]