Marketers Predict Rise In Ad Spending
Executives responsible for allocating marketing dollars are the most optimistic they've been about advertising spending since before the recession, according to a new survey released this week. Despite a slowly expanding economy, the majority of the 3,200 respondents say they plan to devote more money to ad spending over the next 12 months. “Advertiser optimism generally foreshadows increases in ad spending,” said Ken Pearl, CEO of firm Advertiser Perceptions, which conducted the survey. “After three waves of improving and now steady optimism, the outlook for advertising in 2011 is positive overall.”
Data shows marketers are still confident their companies will continue to advertise through digital and mobile media, but bucking recent trends, it appears other outlets will also benefit from an increase in ad spending. For example, respondents say more money will be spent to advertise on cable and broadcast TV as well as through national newspapers and magazines. “That is especially true for targeted accountable media,” Pearl said.
It’s still likely, however, that increased money spent on print ads will fall short of the increases in the use of online and mobile media. Last year, online ad spending was up about 14%, reaching $25 billion. Overall, mobile media continues to have the highest ad confidence level with an index of 66, followed by digital/online media, which has a current index of 59. Cable TV is the next strongest medium, ahead of broadcast TV and print outlets.
Presently, ad spending sentiment is 15 points higher than it was in the spring of 2009, when Advertiser Perception’s Optimism Index reached its low point of negative five. The current sentiment is as high as it’s been since the spring of 2007.
