Advertisers less optimistic about online

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convention3.jpgADOTAS — The ad industry is less enthused about online media than it has in the past, though mobile continues to hold interest.

While a majority, 52 percent, of executives plan to increase their ad spending on online media, that is down from 68 percent who planned to boost their online ad spending in the fall, according to Advertiser Perceptions. Online ad optimism has eroded, with 72 percent of executives optimistic in the spring and 76 percent in the fall of 2007.

Mobile advertising is the only medium other than cable TV to have shown a consistent progression upward. Most traditional media other than cable TV, have shown a continual erosion

API’s semi-annual omnibus studies survey about 1,500 executives in the spring and fall of each year at major marketers and advertising agencies who have responsibility for buying or approving media buys. The index is derived from asking ad execs to describe whether their plans for buying each medium will “increase,” “maintain,” or “decrease” over the next six months. A score heavily weighted toward “increasing,” is deemed “advertiser optimism,” while one weighted heavily on “decreasing” is considered “advertiser pessimism.

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2 COMMENTS

  1. The greatest issue facing the online advertising world is price degradation. As media buyers lower prices to retain advertisers, it will establish a new standard of acceptance. Advertisers will adjust to a smaller budget and the media buyers will learn how to survive on less. And some media buyers will find that not only can they survive but actually thrive on less. As times get better, it will be hard to increase your pricing as either the advertiser’s budgets will stay the same and the media buys will be smaller or they will go to a lower priced media buyer to maximize their budget. This is why relationships are everything.

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