— 2017 Outlook Turns Negative for Growth After Optimistic 1st Quarter —
CHICAGO, Aug. 29, 2017 /PRNewswire/ — A second quarter survey conducted by Strata, the leader in advertising software, found the number of advertising agencies anticipating slower growth in the second half of 2017 compared to the first half increased by 158% from the previous quarter. 41% said winning new business is their main concern, while 23% reported client spending as their biggest concern. 66% of agencies expect their budgets to stay the same or decrease, while 28% expect an increase. Only 25% anticipated the need to expand staff, a 35% decrease compared to the previous quarter.
When it comes to projected platform use, social media has seen a shakeup. Facebook remains perched on top on top with 97% of agencies intending to use it, but Instagram’s projected usage has risen to 64%. YouTube has fallen to 3rdat 60%, and Twitter remains in 4th with 38%.
In spite of these shifts,, ad spend on social media has not moved significantly. While 22% of agencies allocate 11-25% of their budgets on social, 74% plan to spend less than 10%.
Focus on traditional media remains strong, with 66% reporting their client’s interest in network TV & cable remained the same when compared to last year. The same could be said for radio at 63%, local TV and cable at 62%. In other forms of media, 76% indicated that their clients were showing a greater interest in digital video, while 78% reported a grown desire of their clients to advertise more on mobile. Nearly half (46%) of agencies also reported that their clients were curious to explore new live streaming technologies such as Facebook Live to spread their campaigns.