Ad budgets up 6.8%
Ad expenditure for 2010 has exceeded expectations by increasing by 6.8% in the first six months of the year reported Starcom MediaVest Group’s ‘Media Futures’ survey.
Predictions at the end of 2009 were for a 5.3% growth in ad expenditure for 2010, while actual figures show a higher growth of 6.8%.
John Sintras, Starcom MediaVest Group CEO, commented on the result: “The Media Futures
report released last December predicted that advertisers would quickly turn around from a mood of uncertainty to return to strong expenditure growth for most sectors of the media. This mid-year update has shown that turnaround even in the first half has exceeded advertisers’ full 2010 year predictions.”
45% of national advertisers also recorded a year on year increase in expenditure compared to the first six months of 2009. The majority have seen increases of 20% or more, with an average increase of 31%.
The largest increase in spend has been felt in the broadcast sector, with free-to-air television reaping the benefits of almost six in ten advertisers increasing their TV budgets. Many also chose to spend online, with 50% of advertisers admitting to increasing their online spend.
Print expenditure marginally decreased with six in ten advertisers reducing their newspaper spend and 40% less spend on magazine advertising.
Predictions for the second part of 2010 are for a 6.4% rise in ad expenditure. 39% of national advertisers however predict that their budgets will remain fixed.