Optimism Declines Among Ad Execs, All Media Impacted, Even Online

Advertising executives have grown somewhat more pessimistic about their plans for increasing the shares of their advertising budget for all media, but some media - especially online - seem to be holding up better than others. The finding, which comes from the latest wave of Advertiser Perceptions twice annual survey of advertisers and agency media buying executives, indicates a marked drop in the percentage of ad executives who expect their share of ad budgets to increase over the next six months for all the media measured.

The worst hit of all the media, not surprisingly, were broadcast media outlets. Only 16% of ad executives expect radio's share of spending to increase over the next six months, down from 26% when Advertiser Perceptions conducted a similar study last spring, and down from 19% when it conducted it last year. Optimism for broadcast TV, meanwhile, dropped to dropped 22% in this survey from 29% in each of the last two surveys.

The most recent study is based on the results of 2,047 ad executives who completed an online survey in October and November 2007. The last study was conducted in April and May of 2007, and the previous wave was conducted in October and November of 2006.

While the optimism for online media fell slightly from the spring 2007 results, it has actually improved from the year ago sentiment (see table below).

Other notable declines in optimism appear to be impacting newspapers and mobile media.

Advertiser Optimism By Medium For The Next Six Months

Increase

Same

Decrease

Online

76%

21%

3%

Broadcast TV

22%

53%

25%

Cable TV

34%

49%

17%

Magazines

24%

52%

24%

National Newspapers

10%

53%

37%

Local Newspapers

14%

49%

37%

Radio

16%

54%

30%

Outdoor

22%

56%

22%

Mobile

55%

38%

7%

Source: Advertiser Perceptions. Survey of 2,047 advertiser and agency executives conducted online in October/November 2007. Question: Imagine the amount of your company's/your client's total advertising budget as a whole is a pie, and each of these media types is a share of the pie. In the next six months, would you expect the share spent on each to increase, decrease or stay the same as compared to the previous six months?

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