Is the "advertising spring" finally here?

According to the HandelsZeitung’s annual „Advertising Trends 2006“ analysis of the Swiss advertising industry, sentiment among agencies and advertisers is at its highest level in a long time. For the study, the 500 largest companies, 25 media agencies, and 40 recruitment firms were surveyed about their current communications budgets. 35.2 percent of advertisers expect higher budgets—a figure not seen since 2002. Similarly, the percentage of those expecting budget cuts—at 17.6 percent—is at its lowest level. Just under 50 percent are operating with budgets unchanged from the previous year. This is seen as a clear indication of „renewed confidence in the industry.“ Among media agencies, two out of three surveyed also expect rising revenues for the current year. The proportion of pessimists has fallen to 5 percent. Priorities among the most important communication measures have shifted, and brand awareness has grown. Following the perennial favorites of market share and revenue, brand management now ranks third (up from seventh place two years ago). Among traditional media, TV’s share of advertising budgets appears to have peaked at over 23 percent; no further growth in TV spending is forecast through 2010. Integrated communication—under the banner of „cross-media“—is a major trend. When it comes to cross-media campaigns, 51 percent of clients consider newspapers to play a central role. The HandelsZeitung concludes that newspapers can serve as the „aircraft carrier“ in the cross-media mix. The role of online media is significantly less relevant (22 percent rate it as „important,“ 56 percent as “supplementary”), yet they are growing in popularity among over 55 percent of advertisers. The topic of media partnerships also remains relevant, with just under 40 percent considering them important or very important.