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Media Buyers Say Ad Spend Climbing

Media Buyers Say Ad Spend Climbing 32214
As some of you may already know, we survey media buying executives every quarter to identify major advertising trends.  The most recent STRATA Survey, conducted during Q4 2011, provided some important bellwether points around such areas as the economy, mobile, social media and platform focus. Below are a few of the main findings from the January 2012 release, but be sure to check out the full report here.


The STRATA Survey found that 81% expect their client's approach to advertising and marketing to either increase or stay the same.  This is up 14% based on the same figures reported third quarter 2011. Adding to this positive economic surge, nearly half of respondents said they project the 1st half of 2012 to be better than the last half of 2011 with increases in business compared to the same time last year. The impact shows 31% of agencies noted they plan on hiring in 2012, which is up 29% over third quarter 2011 and up 28% over the same time last year.


Digital advertising dollars were nearly unchanged during the fourth quarter 2011 compared to the previous quarter. When agencies were asked about their client's focus on digital, 81% said it was more than it was a year ago, which is actually down 4% from the previous quarter. There is also significant confusion around Digital due to the fact that agencies still say clients don't understand the value (54%). On the social front, Facebook continues its dominance in ad campaigns with 89% of agencies planning to utilize the medium for clients (followed by Twitter (39%), YouTube (36%), LinkedIn (21%) and Google Plus (18% - up 28% over 3Q 2011).


Agencies reported Mobile advertising during the fourth quarter 2011 was up 39%. The iPhone remains the top choice as reported by 83% of agencies surveyed, though Android continues to close the gap, up 32% over third quarter 2011 and up 50% over the fourth quarter 2010. Although the iPad is still third for Mobile advertising, 76% do say that with Apple and Amazon continuing to focus on building tablet content, there will be an increase in interest in advertising on the newer medium.


The STRATA Survey reveals that the top medium of choice for clients in the fourth quarter was Spot TV (Broadcast and Cable) as reported by 51% of agencies surveyed. Digital was second at 31%, which is down 9% from third quarter 2011, followed by Spot Radio (8%). Spot TV (Broadcast) continues to be an area of interest as 28% of respondents said that they are more focused on it than a year ago, up 12% over fourth quarter 2010. As for Spot Cable, 26% say they are more focused on it than they were a year ago, which is up 66% over last year.

About the Data: STRATA conducted the survey of advertising agency respondents online and via telephone in Q4 2011, and had about 90 respondents.


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