STRATA Survey: Don't Kill the TV Yet: Digital Advertising Continues to Make Gains; TV Remains Dominant Advertising Medium

CHICAGO, May 20 /PRNewswire/ -- TV is tops for advertisers, for now.  That's the conclusion of a new STRATA quarterly survey of advertising firms, which shows that while more dollars are moving to digital advertising, corporations continue to spend the majority of their ad budgets on television.  STRATA is the leading provider of media buying/selling software and conducted the quarterly survey.

TV remained the top advertising choice in the first quarter of 2010, with 41.8% of ad agencies saying their corporate clients are more focused on TV than any other medium.  The number was down a whopping 27% from a year ago. Internet/digital advertising continues to increase with 68% reporting that their customers are more focused on digital than they were a year ago.  

"To advertisers, TV still matters," said John Shelton, STRATA President/CEO.  "But just as radio gave way to television, we can see that TV is slowly giving way to digital.  The good news for TV stations and networks -- for now – is that they remain the dominant medium.  Our survey taps into the perception that digital has its limitations in reach and effectiveness and must still be used with traditional media like TV.  But the trend is clear."

Nearly 40% of ad agencies believe it will be at least five years before they anticipate spending more on digital media than traditional media including broadcast and print.  However, just as TV ad share continues to decline, traditional print advertising appears to be declining even further.  Nearly two-thirds of respondents say their clients are less focused on print than they were a year ago.  Not one agency polled feels it will increase print ad buys.

The STRATA survey also reveals that nearly half of advertising agencies polled (47.3%) felt their business increased during the first quarter over the same time last year.  That is a reversal from a year ago, when less than 25% of those polled reported that their business was increasing.  The survey also shows that 25% of agencies say they plan on hiring staff this year, a 100% increase from just a year ago.  A third of advertising agencies say the economy and their business will return to a strong growth period by late this year, and 16.4% of agency clients are increasing their advertising budgets.

"To us, our survey further signals the end of the recession," added Mr. Shelton.  "This isn't just positive news for the advertising industry; it's a broader, more positive sign of a recovering economy."

Radio stations saw a slight increase from the previous quarter with 16.4% of agencies pointing to radio as their top advertising choice. 

Other key findings of the STRATA survey:

• 87.5% of advertising firms say they are most likely to use Facebook in client campaigns (followed by Twitter (57.1%) and YouTube (39.3%).
• 62.5% handle Search/SEM/PPC placements in-house.
• Only 5.4% of agencies plan on decreasing their staff this year.
• 32.1% of the agencies say that their clients focus on spot radio will be less than it was a year ago.
• 67.9% say their digital spend goes toward online display followed closely by social media and PPC/Search/SEM/SEO.
• 32.7% point to client spending as their largest challenge this year.

STRATA

The whole-scale changes that are occurring in this fragmented media landscape require a customizable and convergent solution with the technology to enable organizations to lead rather than react.  STRATA transforms businesses in a way that adds efficiency and precision across traditional and emerging platforms at the scale media clients demand.  The company has earned its esteemed reputation by consistently leading new innovations in the field and diligently serving its clients for over 25 years.  STRATA is owned by Comcast Cable. For more information, visit www.gotostrata.com or call (800) 9 STRATA

SOURCE STRATA