Ad Agencies Are Going Strong in the Second Half of 2014
September 22, 2014 | 2:07pm
Ad agencies responded very positively when asked about the health of their businesses in the most recent STRATA Agency Survey. The second quarter survey found that 62% of agencies see their business increasing this quarter compared to the same time last year, which is tied for the highest level in the history of the survey and represents a 37% increase over the end of 2014. The survey also saw the third lowest level of agencies that say their businesses were shrinking in 23 quarters.
In addition to a strong first half of 2014, agencies are optimistic about the second half of the year, which will be bolstered by the holiday advertising season and political ads for Congressional elections in November. Over half (51%) of agencies expect their future for the remainder of 2014 to be better than the first half of the year.
A key component of this growth, of course, comes from the clients. Thirty-four percent say their customers are increasing their budgets from last year, which is a big jump of 43% over a year ago, and half are keeping their budgets the same as last year.
The growth and optimism is also supporting personnel expansion, as 34% of agencies plan to hire staff in the remainder of the year, which is 44% higher from a year ago.
Despite the positive numbers, agencies still have their concerns. Attracting clients is still the top concern for agencies (36%) as it came in first for the twelfth straight quarter. Media mix (22%) surpassed client spending as the second biggest concern for agencies.
Overall, 2014 looks to be a strong year for agencies, and should only pick up speed with major holiday and political ad spend coming in the last quarter. Stay tuned!