Advertising industry cautiously optimistic about the future
Although the advertising industry is looking to the future with confidence, expectations are more subdued than they were last year. And the financial crisis is also taking its toll on advertisers. These are the findings of the study «Advertising Trends 2008,» published by the Handelszeitung.
Although the advertising industry is looking to the future with confidence, expectations are more subdued than last year. And the financial crisis is also causing problems for advertisers. These are the findings of the "Advertising Trends 2008" study published by Handelszeitung. For the current year, a good one in two agencies (57.4 percent) still expects billings to rise. Compared to 2007, however, a slowdown is noticeable: Back then, eight out of ten agencies expected an increase. Among the 500 companies surveyed, 30.5 percent of advertising clients have an increasing communications budget. The proportion of clients who have to make do with a smaller budget rose from 15.7% in the previous year to 22.1%. Around half (47.5%) have roughly the same amount of money available for communication as before. Expectations are particularly subdued for the second half of the year.
A slump is noticeable in the financial industry: last year, 52.2% of the financial service providers surveyed expected their budgets to increase. This year, the figure is just 23.8 percent, or around half. Among banks, the proportion of companies with a budget of more than CHF 5 million is falling, while the proportion with a budget of less than CHF 1 million is growing.
Shifts can also be observed in the media mix: While newspapers were able to increase their share to 32.6% in 2007, they can expect a decline of 6% this year. For 2013, advertising clients estimate the share of newspapers at 23.1%. TV advertising has also lost ground, with a decline of 1.6% in the forecasts for 2008. The winner of this shift is the online and mobile media category, which is up 4.9 percent in terms of the advertising pie. According to the Handelszeitung, this picture is not only evident among the advertising clients surveyed, but also among the 60 or so advertising agencies surveyed. Poster advertising also saw a slight increase.
A slump is noticeable in the financial industry: last year, 52.2% of the financial service providers surveyed expected their budgets to increase. This year, the figure is just 23.8 percent, or around half. Among banks, the proportion of companies with a budget of more than CHF 5 million is falling, while the proportion with a budget of less than CHF 1 million is growing.
Shifts can also be observed in the media mix: While newspapers were able to increase their share to 32.6% in 2007, they can expect a decline of 6% this year. For 2013, advertising clients estimate the share of newspapers at 23.1%. TV advertising has also lost ground, with a decline of 1.6% in the forecasts for 2008. The winner of this shift is the online and mobile media category, which is up 4.9 percent in terms of the advertising pie. According to the Handelszeitung, this picture is not only evident among the advertising clients surveyed, but also among the 60 or so advertising agencies surveyed. Poster advertising also saw a slight increase.
