Digital may be getting most of the buzz these days, but many leading ad agencies aren’t forgetting about the value of traditional media, details STRATA in May 2012 survey results. TV remains the top advertising choice for 54% of the respondents (the highest proportion since Q1 2009), more than double the proportion citing digital to be their top medium (24%). And although an impressive 79% of respondents are more focused on digital compared to a year ago, some are also getting more excited about traditional media: 30% are more focused on out-of-home (OOH), with spot TV (26%), radio (25%), and even print (11%) seeing an increased level of attention from a significant proportion of agencies. Overall, although 21% of agencies feel that they will spend more on digital than traditional some time in the next 1-3 years, 46% say their digital spend will never overtake their traditional media spend. This is a significant jump from 38% of respondents in Q4 2011 who felt that way, and comes after March 2012 survey results from DataXu revealed that almost three-quarters of enterprise decision makers report a shift in budgets from traditional advertising to digital in the past year.
Data from the STRATA survey indicates that within the digital advertising space, social (69%) is challenging online display (71%) as the top option, beating out search (65%) in the process. Facebook (85%) still takes top billing in the social category, with YouTube overtaking Twitter for the second spot, and Google+ coming in fourth, at 24%.
Agencies appear to have a fairly upbeat outlook, with 47% seeing their business increasing this quarter compared to the same time last year, against just 11% who see it decreasing. Almost two-thirds of the respondents said their clients’ approach to ad planning is the same as last year, while only 20% said their clients are making cuts to planning, the lowest proportion to report this since 2008.
1 in 5 agencies feel that their business and the economy is in a strong growth period, with an additional 23% saying that will happen by later this year. This optimism translates to hiring, with one-third planning to add new staff.
About the Data: STRATA conducted the survey of advertising agency respondents in Q1 2012, and had more than 90 respondents.
Topics: Agency Business, Analytics & Automated, Brand Metrics, Media & Entertainment, Mobile Phone, Online & Mobile, Out-of-Home, Paid Search, Radio, Social Media, Spot, Staffing, Television, Traditional
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