US ad agencies pessimistic about short-term spending
Nearly a third of US agencies (31%) believe they will reduce their ad spending over the next six months, according to a new tracking study from Advertiser Perceptions.
Looking at media categories, 35% of agency executives plan to cut broadcast TV ad budgets, compared with 55% of marketers.
For national newspapers, 54% of agencies and 71% of marketers plan cuts. For cable TV just 18% of agencies plan budget cuts, compared with 33% of marketers.
For outdoor advertising, 22% of agencies plan cuts, while 44% of marketers plan to reduce spending.
There continues to be an optimistic outlook for online media according to the study, with just 17% of marketers and agency execs plan to cut in that area. In addition, only 10% of agency execs and 11% of marketers plan to cut spending in online search.
US mobile advertising budgets are likely to be boosted, with 52% of agency executives and 58% of marketers saying they were planning increases. In contrast, 26% of marketers say mobile advertising budgets will be cut.
Earlier this month, Jack Myers.com Media Network forecast that US advertising spending would drop 12% in 2009, adding that there may be a levelling off in 2010 (see US adspend forecast to drop 12% in 2009).
Looking at the UK, the Advertising Association has forecast that adspend levels in the UK will fall by 4.3% in 2009 at current prices, with a modest upturn set for Q2 2010 (see UK adspend levels to fall 4.3% in 2009).