Marketing Forecast from Ad-ology

The slowing economic recovery has prompted many research shops to adjust their ad spending predictions for the balance of 2011. In early July, MagnaGlobal revised its projections down from 5.6% to 5.2%, globally. ZenithOptimedia has also come out with some new numbers and emphasizes that the continued growth in ad spending during the recovery will reach pre-recession levels by the end of the year.

Auto dealers enjoyed strong sales in 2010 and several surveys have found that consumer intent to purchase an auto in 2011 is rising. To fuel these higher sales, manufacturers and dealers are putting money into new ad campaigns. Some research shops report that dealers are being particularly aggressive about the resources they’re putting into online advertising this year.

If the IPO market is a leading indicator of an improving economy, things are looking up. For 3 consecutive quarters, private equity and venture capital firms have brought companies into the public markets and raised over $10 billion. This kind of business development indicates a positive attitude and means companies are now flush with cash which they’ll use for expansion and marketing.

Digital agencies supply critical expertise for many marketers. While these shops are relatively new, marketers have been paying them the same way they pay traditional agencies, using a fixed or labor-based fee arrangement. But the latest survey on this topic indicates changes are on the horizon.

Local TV and radio stations play an important role in the ad market. Though some analysts downplay the influence of these traditional media formats for the future, the National Association of Broadcasters (NAB) has issued a new report underscoring the broad reach of these media channels.

There’s no question that we’re in an ad recovery, especially given the strength of the rebound last year: 8.0%. What forecasters can’t settle on is the level of ad spending growth seen for 2011. MagnaGlobal had previously predicted a global increase of 5.6%. But that forecast has been revised, down.