Strata

REPORT SHOWS AGENCIES SHIFTING MEDIA MIX

The worst may soon be behind us. That was the sentiment by respondents in a recent study by STRATA of media buying agencies. While that may be true and people start to spend on advertising again, they are being careful about it and are exploring new avenues. STRATA, a leader in media buying/selling software conducts a quarterly survey comprised of 40 agencies of varying sizes across the country.

Spot TV remains king with 45% of respondents saying that their customers are more focused on spot television advertising than any other media. While that is a large majority, it is a 25% decrease since the end of 2008. As a matter of fact, 45% of those surveyed said that their customers focus on Spot TV is less than last year. That echoes a recent report by TNS Media Intelligence that saw local market TV down by 27% in the first quarter.1

One area that has caught the interest of agency clients is Advanced Advertising or Digital Media (i.e. Video on Demand, interactive television, etc.). Agencies witnessed a 40% increase in those who are very likely to advertise in this new medium. As a matter of fact, 62.5% of the respondents felt their customers were either very likely or somewhat likely to fit Advanced Advertising into their plans this year to reach their target markets.

“While many people have cut back their approach this year, many are looking at other ways of advertising such as Video on Demand,” said John Shelton, STRATA CEO/President. “We’ve also witnessed a lot more interest in Internet advertising and a slight pick up in less expensive medium such as Radio.”

Of the respondents, 65% say that their customers’ focus on Spot Radio have remained the same or increased since last year. “In recent months, we have noticed an increase in advertising,” said Bob McCurdy, President of Katz Marketing Solutions, the national marketing arm of the Katz Media Group. “Radio continues to be an affordable and efficient way to reach an advertiser’s target market. And across the country, we continue to have in-depth discussions with various agencies and advertisers about how to best and most creatively utilize the medium.”

Internet advertising has received a lot of attention in this survey group, with 75% of respondents focused on Internet more than they did a year ago. That’s a 20 increase from the first quarter 2009.

The biggest drop is with Print advertising. Of those polled, 65% say their customers’ focus on print will be less than last year, a 37% drop from the first quarter 2009.

Of those polled, there was a 22% increase in those who feel that their business is increasing in this quarter over the same time last year. While there was that increase, the top concern remains client spending which was the main challenge in the first quarter and up 138% since the end of 2008. Back in 2008, client attrition topped the list of agency challenges. But when asked when they felt the economy was going to return to a strong growth period, there was a 67% increase of those who felt the rebound would come by the end of this year. This could be evidenced by the fact that 15% of the agencies plan on hiring this year, and 80% plan on no reduction in staff.

More results of the STRATA survey…

Those who felt their customers’ focus on print will be more than last year dropped by 25%

There was a 100% increase in those who felt that client attraction was their biggest challenge in 2009

15% of agencies say that that their customers are most focused on Spot Radio (a 500% increase since the end of 2008)

72.5% of the agencies saw their clients either making minor cuts or cutting back considerably from their spending in 2008.

Links:
www.gotostrata.com
www.comcastspotlight.com
www.horizonmedia.com