Advertising Business Continues Growth
June 24, 2015 | 9:24am
STRATA’s most recent Agency Survey found several positive data points regarding ad agency growth.
Almost half of agencies (45%) report that they expect to see their business increase in the first quarter as compared to the same time last year, while 37% see flat growth. Even more agencies (53%), project their growth for the first half of 2015 to be stronger than the last half of 2014. Twenty-two percent say their clients are increasing their ad budgets.
This growth translates nicely for hiring as 44% say they plan on adding staff this year, a 37% increase from a year ago. Only 3% say they plan on cutting staff, the lowest amount seen in the STRATA Agency Survey since 2012.
Even with generally positive numbers, there are still issues facing agencies. Client attraction became the top concern for agencies (25%), replacing media mix (22%) for the first time in the last two quarters. Advertising costs ranked third for agencies (18%).
Advertising agencies may carry this positive momentum into the second half of the year, which will include the always-important holiday/shopping season and all the ad dollars that come with along with that. We’ll be tracking their progress closely.