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Advertising Budgets to Drop in 2008?
Monday, January 07, 2008
I was reading an interesting post from Joe Mandese over at Media Post. The article discussed the fact that advertising executives have grown pessimistic about their plans for increasing their advertising budget components in 2008. The one noticeable exception? Online Advertising. According to Mandese:
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 noticeable declines look to hit newspaper and mobile media. Interesting as mobile advertising is still unproven and really untapped as an advertising medium in North America.

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.

While mobile advertising may slow in the first quarter to first half of the year, expect mobile advertising to become more important in the later half of 2008. Depending on when marketing budgets are set, we may see some advertisers in fact place more advertising budget on online and mobile marketing.

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posted by Jody @ Monday, January 07, 2008  
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