Online and posters benefit most from increasing advertising expenditure
The association “Organization of Media Agencies” (OMG) in the General Association of Communication Agencies (GWA) publishes its current autumn monitor. 44 percent of the 17 member agencies assume that economic development in 2011 as a whole will improve compared to the previous year. All respondents expect increasing gross advertising expenses. Increases are expected from all media types, which are only disproportionately low for daily newspapers. Online category is and will remain number one in the assessments. Due to the unusually high investments made by individual advertisers in the spring, the poster came in second.
The increased advertising expenditure is being fed again by online services, followed by spending in the mass media and, of course, the automotive industry. The question of how the advertising market development of the media genres will be seen in the next five years was answered as expected: With 100 percent of the mentions, the Internet is the medium with the strongest development. Posters are also accorded greater importance – in percentage terms even ahead of television and radio – albeit at a significantly lower level.
The poor economic outlook and the increased prices, combined with the frequent pitches in recent years, have evidently led to a slight reduction in the pressure on the agencies’ fees. While 82 percent of media managers said in autumn 2010 that the pressure on fees had increased, it is now only 63 percent. However, the business of media agencies in dealing with advertisers is still strongly economic; advertisers are concerned with high capital expenditures. In addition to the strong pressure on the fees, there is high deadline pressure, frequent rescheduling and the number of budget changes. In addition, a further increase in the number of audits used by advertisers to assess the performance of media agencies is noted. If the importance of communication tasks that advertisers expect from media agencies is highlighted, then sales increase and customer loyalty, combined with an increase in market share and new customer acquisition, are still the priority of the task.
When it comes to the development of the forms of remuneration, there is a clear change compared to the autumn monitor 2010. The remuneration based on project fees no longer increases to the same extent as was mentioned in the autumn monitor 2010; the performance-related remuneration based on the sales development and based on the advertising effect is much more in focus. When asked about developments in their own agency, 81 percent of media managers still see an increase in development. The increased performance demands of the media agencies, combined with increasing quality advice, is particularly expressed in staffing. All media managers surveyed are increasing their staff in the planning area, and research and services are also growing disproportionately. The advice and quality aspect is clearly the focus. The purchasing area, which was important in the past, is only growing at a disproportionately low rate and the administration area is even being cut back. When asked about the usage behavior of the population according to media types in the next five years, all media managers expect growth in mobile, 94 percent in online only 6 percent in TV. Consumers’ time budgets will therefore grow disproportionately in mobile and online at the expense of classic media types.
The full results of the Autumn Monitor 2011 can be viewed here: