Are we nearing the end of traditional advertising formats like TV and radio ads? Will we view them as a long gone discipline five or six years from now? According to the State of Advertising report, released recently by the World Federation of Advertisers, the answer is plain and simple no.
Traditional ads are staying for sure. Given the statement “Looking ahead five years, I can imagine a world without traditional advertising formats,” only 8% of the respondents “strongly” agreed while 28% of them “strongly” disagreed and 34% “somewhat” disagreed.
Digital spending is a top priority for marketers, but not lacking behind, with 60% of those surveyed, offline media advertising like TV and radio is also labeled as a priority, including the 14% who labeled it their “top” priority. These ad dollars will largely be spent through media buy agencies, in spite of the in-house trend of big companies, that may be overstated according to the report. 75% of the companies say they’ll probably rely even more on media shops to buy traditional media in 2020 and 64% say they’ll rely on them more for media planning too.
There is also good news about the percentage with which advertising is represented in the marketing budgets. According to the World Federation of Advertisers survey, advertising represents on average, 61% of the total marketing budgets. And for 20% of the companies, advertising is how they spend more than 90% of their total marketing budget.
The ad budgets are growing too. Ad investment is up for 43% of survey respondents in the last year, while among those reporting budget shrinkage, a quarter said it was “somewhat less,” with 7% citing a significant decrease. Asked what their message was focused on, 55% said their ads are designed to promote brand awareness, while 31% said it was a mix of brand awareness and driving a purchase.