A turnaround in advertising?
Advertising Market: A small ray of hope in the advertising slump: The number of companies that have cut their communications budgets for this year has declined for the first time. Recruiters continue to cut back on advertising.
Advertising market Small ray of hope in the advertising tunnel: The number of companies that have reduced their communication budgets for this year has fallen again for the first time. Communications managers in Switzerland are cautiously optimistic about the future: they do not expect advertising expenditure to increase until the second half of the year at the earliest - but they are also happy if spending is not cut further. This is the general consensus among advertising experts who were asked by HandelsZeitung about the development of advertising volumes in 2003. Even those who expect the first half of the year to remain at the previous year's level or to see slight growth remain in the minority. This changes in the estimates for the second half of the year: the proportion of those who expect advertising expenditure to remain the same or even increase rises to around 60 percent.
These forecasts become more comprehensible if they are based on the development of communication budgets. At 28.2 percent, the proportion of companies with a larger communications budget this year than in 2002 is still smaller than the proportion of those with a reduced budget (32.1 %). However, this could be a turning point. Compared to last year, the proportion of clients with increased budgets remained stable, having fallen by more than a third between 2000 and 2002. And at 39.7 percent, those who have the same amount of money available for advertising still make up the largest proportion. Incidentally, most companies with higher budgets can be found in the clothing and cosmetics industry as well as in the retail sector.
Chef Schmalhans
Print expenditure on recruitment will fall again: three years ago, 42.9 percent of recruitment consultants invested more than one million francs, whereas in 2003 only 7.1 percent invested such sums. Among financial service providers, 71.4 percent will have to reduce their communication expenditure this year. The proportion of those spending more than five million francs has practically halved within three years. At the same time, the proportion of those investing less than one million francs has risen to more than half (52.4 %).
Nevertheless, even the agencies are optimistic about the future: 42.9% expect higher budget sales - last year, only 37.5% believed this. However, the proportion of those expecting a decrease also rose (plus 1.2 %).
How the Advertising Trends study came aboutThe Media Research Group conducted a written survey on behalf of HandelsZeitung from the beginning of February to mid-March of 400 communications managers from the 500 largest companies in Switzerland, 60 advertising agencies and all 25 media agencies, the 40 recruitment consultancies with the largest budgets for job advertisements and 50 banks and financial service providers. The response rate was between 39 and 90 percent, depending on the sector. (mk)
Question to the advertising clientsAre you facing a larger or smaller increase in advertising costs compared to the previous year?
Budget amount available?
Question to the agenciesDo you expect a higher, the same or a higher increase in sales compared to the previous year?
lower budget turnover?
Markus Knöpfli
These forecasts become more comprehensible if they are based on the development of communication budgets. At 28.2 percent, the proportion of companies with a larger communications budget this year than in 2002 is still smaller than the proportion of those with a reduced budget (32.1 %). However, this could be a turning point. Compared to last year, the proportion of clients with increased budgets remained stable, having fallen by more than a third between 2000 and 2002. And at 39.7 percent, those who have the same amount of money available for advertising still make up the largest proportion. Incidentally, most companies with higher budgets can be found in the clothing and cosmetics industry as well as in the retail sector.
Chef Schmalhans
Print expenditure on recruitment will fall again: three years ago, 42.9 percent of recruitment consultants invested more than one million francs, whereas in 2003 only 7.1 percent invested such sums. Among financial service providers, 71.4 percent will have to reduce their communication expenditure this year. The proportion of those spending more than five million francs has practically halved within three years. At the same time, the proportion of those investing less than one million francs has risen to more than half (52.4 %).
Nevertheless, even the agencies are optimistic about the future: 42.9% expect higher budget sales - last year, only 37.5% believed this. However, the proportion of those expecting a decrease also rose (plus 1.2 %).
How the Advertising Trends study came aboutThe Media Research Group conducted a written survey on behalf of HandelsZeitung from the beginning of February to mid-March of 400 communications managers from the 500 largest companies in Switzerland, 60 advertising agencies and all 25 media agencies, the 40 recruitment consultancies with the largest budgets for job advertisements and 50 banks and financial service providers. The response rate was between 39 and 90 percent, depending on the sector. (mk)
Question to the advertising clientsAre you facing a larger or smaller increase in advertising costs compared to the previous year?
Budget amount available?
Question to the agenciesDo you expect a higher, the same or a higher increase in sales compared to the previous year?
lower budget turnover?
Markus Knöpfli
