Barclays Capital claims that 2012 will be a “low growth environment” for advertising agencies. Barclays forecasts that agency organic revenue growth will average 2.9% next year – down from the 5.6% it expects agencies to record in 2011.
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According to the latest advertising industry review from Bank of America Merrill Lynch (BoAML) WPP is best placed to deal with the structural changes in the industry.
Facebook’s display ad revenues will total $3.8 billion this year – up 104% from 2010, according to a recent eMarketer forecast. By comparison, Yahoo!, AOL, and MSN’s display ad sales – not including search – were modestly up year on year, with growth of between 5% and 15%.
Razorfish, the Publicis-owned agency, has invested 66% more in ad exchange-based buys than it did in 2009. This year, the figure will rise another 60%, according to ClickZ.
Ofcom today concluded its review of TV advertising trading. The review, which examined the way TV advertising is bought and sold, found no clear evidence of harm to consumers – whether TV viewers, advertisers or end users of products advertised on TV.
MediaTel Group’s ‘First party data – the publisher’s black gold?’ event – held at the Haymarket Hotel on Wednesday – produced many views and exposed a number of market tensions. Potentially a clearer view of the future emerged from the discussions.
Let’s not all laugh at the exit of the two Manchester clubs from the UEFA Champions League this week. When there are losers there are also winners. Think of Channel 5’s opportunity to increase advertising revenue with increased audiences on a Thursday night when the two clubs play in the Europa League.
Andrew Bradford, VP Client Consulting at Nielsen, kicked off the MediaTel event with a scene setter that helped us all understand the current state of play and how the opportunity around first party data could play out.
The media industry is not helping itself and is in danger of destroying value.
WPP’s GroupM has reduced its 2011 UK ad spend forecast from 1.5% to 0.7%.