Starcom Media Futures Mid-Year Update reveals overall ad spend in 2012 revised down to 1.3%
Growth in overall ad spend in 2012 has been revised down from 3.8% in December 2011 to 1.3% according to the Starcom Media Futures Mid-Year Update.Advertisers contacted for the Media Futures Mid-Year Update reported that average growth in ad spend for the first half of 2012 was 1.8%, down from a predicted annual increase of 3.8% in December 2011. And the second half of the year is expected to be tighter still with spend forecast to increase just 0.8%.
This is the second year in a row that advertisers have overestimated their budget growth rate and revised it down in the mid-year survey.
This year, advertisers have reported the lowest proportion of increased
ad spend in the three years since the mid-year update was launched. Only
38% of budgets increased in the first six months compared with 44% at
the same time last year.
Says John Sintras, Starcom MediaVest CEO: "These figures reflect a trend we have observed over the past few years, with advertisers exercising a cautious approach to spending in a climate where there is still uncertainty over the global economic conditions."
The first six months
Online expenditure is one area which continues to grow in terms of the proportion of ad dollars spent. Total online spending - taking in display/banner, search and mobile - was up for 62% of advertisers whose budgets have increased. Free-to-air TV and newspapers were nominated as areas of significantly increased ad spend by 38% of advertisers whose budgets have increased followed by STV, radio, magazines and out of home all on 25%.
The mid-year update found that among advertisers whose budget has increased, most (62%) were expecting the level of change, but among those whose budget decreased, most (67%) did not expect the size of their budget change.
The next six months
In the second half only 33% of advertisers are predicting an increase in their advertising budgets, continuing a downward movement seen over the past two years (this figure was 45% in the 2010 mid-year update). Overall among advertisers whose budgets are increasing, this change is much smaller than the first half of the year at 0.8%.
Says Sintras: "The past two years of the survey have shown the mid-year update is a much closer forecast to actual spend, so it's likely to be a very tight end to 2012."
Says John Sintras, Starcom MediaVest CEO: "These figures reflect a trend we have observed over the past few years, with advertisers exercising a cautious approach to spending in a climate where there is still uncertainty over the global economic conditions."
The first six months
Online expenditure is one area which continues to grow in terms of the proportion of ad dollars spent. Total online spending - taking in display/banner, search and mobile - was up for 62% of advertisers whose budgets have increased. Free-to-air TV and newspapers were nominated as areas of significantly increased ad spend by 38% of advertisers whose budgets have increased followed by STV, radio, magazines and out of home all on 25%.
The mid-year update found that among advertisers whose budget has increased, most (62%) were expecting the level of change, but among those whose budget decreased, most (67%) did not expect the size of their budget change.
The next six months
In the second half only 33% of advertisers are predicting an increase in their advertising budgets, continuing a downward movement seen over the past two years (this figure was 45% in the 2010 mid-year update). Overall among advertisers whose budgets are increasing, this change is much smaller than the first half of the year at 0.8%.
Says Sintras: "The past two years of the survey have shown the mid-year update is a much closer forecast to actual spend, so it's likely to be a very tight end to 2012."
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