Cheer up! Online, things aren’t so bad anymore.
JP Morgan surveyed 20 media buyers and planners with about $1.6 billion in annual ad spending sloshing between them and discovered most of them are ready to spend way more money than they were a year ago.
No one expects a return to boom times. But for media — which some people believed was “sleep-walking into extinction” in November 2008 — any forecast besides doom is a nice uptick.
JP Morgan’s results:
- The majority of respondents estimated that 2H’09 ad spend will likely be up more than 5% from 1H’09 levels and flat from the same period a year ago.
- About 50% of respondents see 2010 ad spending increasing anywhere from 5% to 14% versus 2009.
- 90% figure 2010 will at the very least be flat versus 2009.
Meanwhile, Nielsen Online CEO John Burbank got on a conference call yesterday to share his “perspective on emerging Brand Advertiser spending trends.”
There was a mix of good and bad news for online publishers in his remarks.
- The bad: While people spend 21% of their time online, “well under 10% of total Ad spend is allocated to the Online Channel.” That’s because advertisers still prefer TV’s huge reach.
- The good: These advertisers will soon figure out online might be a more efficient place to spend money. Nielsen reported that online “brand recall of 43% and message recall of 33% materially outperformed TV at 15% and 11%, respectively.”
- The really good: “The average ROI of an online brand campaign was 153%, and drove an average lift in sales of 32%, an 18% increase in penetration, and 14% higher conversion rates. “
Don’t miss: HOORAY! The Online Ad Market Hasn’t Collapsed In 2009
Photo: the half-blood prince