December 22nd, 2016 | Read more articles from 2016 or Visit the News Archive
Agencies Upbeat On 2017 Business
Originally Appearing in: Spots n Dots
Reversing course, the latest quarterly survey of advertising agencies conducted by STRATA, a Comcast company, finds that confidence among agencies heading into 2017 is high. 43% of agencies report that their business will increase in the first quarter of 2017, while only 11% expect a decrease. 42% of respondents anticipate the need for additional staff next year, and not a single agency reports plans to reduce staff sizes. This comes in contrast to Q2 this year, which found that the rate of hires was decreasing, and concerns over needing to reduce staff sizes were increasing rapidly.
When asked what the biggest challenges ahead were, 51% stated that their biggest concern was expanding their client roster, followed by determining the right media mix (22%). Only 13% of agencies felt that client retention was their chief concern, reflecting confidence in existing relationships.
The fourth quarter survey found video advertising remains the dominant focus, with 34% of agencies noting their clients’ primary focus was local TV & cable. For the first time the survey’s history, digital video claimed the second spot, with 27% of agencies responding that it was their primary focus, a 79% increase over the previous year. Display advertising, previously in the second spot, fell to third with 15% reporting it as their clients’ main focus.
Although only 6% of agencies report plans to allocate between 26-50% of their budgets to paid social, that’s an increase of 321% compared to the first quarter this year. A majority of agencies report that paid social media accounts for the smallest portion of their budget (0-5%), and 18% percent of agencies noted that it accounted for 11-25% of their budget, an 80% increase over last year. In terms of which platforms agencies are using in social campaigns, Facebook remains dominant, with 94% planning to use the social network. YouTube, Instagram, Twitter and Snapchat follow.