Digital Ad Optimism Ebbs, Remains Higher Than All Other Media

The confidence of U.S. ad executives continues to erode, and the plans for their advertising budgets continues to decline, according the most recent in a semi-annual tracking study of top marketer and agency media executive perceptions about the media economy. The study, the first fielded since the credit crisis and U.S. and global economic meltdown began in October, however, reveals that digital media options such as online and mobile marketing remain the most immune to reduced spending expectations.

 

More than two-thirds (68%) of the more than 1,000 ad executives surveyed by Advertiser Perceptions Inc. expect to boost their online ad budgets over the next six months, which is stronger than the expectations for all other major media. The online spending confidence levels, however, have dropped from 72% who expected it to grow during the API's Spring 2008 survey and 76% from its Fall survey last year. The percentage expecting to decrease their online ad spending has more than doubled to 7% this fall from 3% a year ago, but still remains stronger than any other medium.

Mobile, which the only other medium in which more than half of ad executives expect to increase their advertising budgets over the next six months, has also been trending down. Fifty-one percent of the executives expect to boost their mobile ad spending now vs. 53% in last Spring and 55% last year. The percentage planning to decrease their mobile ad spending has grown to 12% now vs. 7% a year ago.

"In this economy, nearly all advertisers need to know that their ad dollars are working, delivering results," Ken Pearl, once of the principals of API, explains. "So for sellers of advertising, demonstrating their media brands' ad results potential and delivery is absolutely essential."

Percentage Of Online Ad Budgets

 Expected To Change Over Next Six Months

 

Increase

Maintain

Decrease

Fall 2008

68%

25%

7%

Spring 2008

72%

24%

4%

Fall 2007

76%

21%

3%

Source: Advertiser Perceptions Inc. Fall 2008 report. Base = 1,001 advertising executives surveyed in October and November 2008.

 

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