Ad Expenditure To Increase

Advertisers are intending to increase their ad spend by an average of 7%, at current prices, in 1992 according to Media Audits’ third Advertiser Opinions On Media survey, published this week.

The study, compiled from 70 responses from the top 300 advertisers in the UK with a combined expenditure of £600m, found satellite gaining in respectabil- ity. Respondents predicted that satellite would take 3.5% of their media budgets in 1992, an increase of 1% on 1991.

With regard to Channel 4’s independent sales from 1993, advertisers predict a price premium for the channel, with ITV in the middle, and Sunrise and BSkyB being discounted.

64% of those questioned felt that the NPA’s on-going initiative to convince advertisers to spend more in the national press would not be success- ful; 19% thought it would work.

The study found broadcast sponsorship to be low on the list of priorities for most advertisers. 74% of respondents have no plans to use it. 10% of advert- isers currently use sponsorship and a further 16% intend to in the future.

The study also looked at the issue of agency over-charging and fraudulence. 55% of advertisers questioned believe agencies are guilty of inflating invoices, whilst 39% feel agencies do not over-charge and 8% don’t know.

42% believe that fraudulent practices are widespread, 31% disagree, and 26% don’t know. However, 72% favour results-related payment and 12% of those have already introduced payment by results.

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