Starcom MediaVest Group Media Futures survey predicts growth for second half 2013 in otherwise flat year – full year growth revised down to 0.9%

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image006.jpgSignificant variability in budget increases predicted by advertisers have pushed up spending forecasts for second half 2013 to growth of 3.5% according to the Starcom MediaVest Group Media Futures Mid-Year Update.

 

Advertisers have substantially decreased their ad growth expectations for 2013, decreasing from an estimated 1.7% in December 2012 to 0.9% overall, which represents a continuation in the trend seen in 2011, where the mid-year update has shown a lower growth rate.

Almost half of advertisers surveyed for Media Futures Mid-Year Update said their budgets would not change in the first six months of 2013.

 

In the second half of the year, advertisers reported significantly different levels of spend increase but combined this pushed the overall spend forecast up.

 

Starcom MediaVest Australia CEO Chris Nolan said all of the advertisers surveyed who said their budgets will increase indicated that they will spend more online.

 

Says Nolan: “The money is clearly following the eyeballs, so it’s logical that as online audiences increase, so too does ad spend.”

The first six months

Almost half of advertisers’ budgets remained the same in the first half of this year, but among advertisers whose budgets increased, 60% reported the increase was more than expected.

 

Says Nolan: “At the end of 2012, predictions were stronger for 2013 with growth of 1.7% anticipated, versus the actual first half decrease of -1.7%.

“The political instability of the past 12 months coupled with low consumer confidence has made advertisers reluctant to spend until conditions improve.”

 

The next six months

Among advertisers who anticipate their budgets will increase in the second half of 2013, almost 80% say it’s by a greater proportion than they were expecting.

 

Says Nolan: “Governments have a history of spending more on advertising in an election year, and we’ll see that bounce in the final six months of 2013.

“Advertisers also realise they can’t wait any longer for certainty on an election date and will get on with business as usual for the rest of the year.”