Agencies More Optimistic On US Media Recovery Than Advertisers, Finds Myers
Media and advertising agencies are more optimistic on the outlook for a US media market recovery than are the advertisers themselves, according to the results of a survey conducted by Jack Myers Report.
A recovery from the current media downturn is expected by the end of 2002 by 42.6% of agency respondents, but just 26.7% clients. If not by the end of the year, then by early 2003, say 27.9% of agency execs, but just 22.2% of clients. However, slightly contradictorily, over a quarter of clients expect a recovery by mid-2002, compared to just over one fifth of agency executives.
These responses are shown in the table and line graph below.
| When do you think the media industry will recover from its current downturn? | |||
| Total respondents (%) | Clients (%) | Agencies (%) | |
| Early 2002 | 0.8 | 2.2 | 0.0 |
| Mid-year 2002 | 23.4 | 26.7 | 20.6 |
| Year-end 2002 | 35.5 | 26.7 | 42.6 |
| Early 2003 | 26.6 | 22.2 | 27.9 |
| Mid-year 2003 | 8.9 | 13.3 | 7.4 |
| Year-end 2003 | 2.4 | 4.4 | 1.5 |
| Beyond 2003 | 2.4 | 4.4 | 0.0 |
| Source: Jack Myers Report, February 2002 | |||
Despite the majority expecting no recovery until mid-2003, 41% of US client executives said that they plan to increase their media spending within the next twelve months. By comparison, only 22% of agency respondents said they were expecting a similar upturn in terms of advertiser spending.
“Forty-four percent of clients consider issues related to specific media sectors to be a primary reason for the downturn in the media economy. The collapse of the internet balloon, greater media fragmentation, consolidation of multi-media companies and consolidation of media buyers all factor into opportunities to deliver equal media weight and coverage with less spending,” says Jack Myers.