GLOBAL – MAY 24, 2011 – Rising client ad budgets, more new product launches and more client confidence about the general business environment are some of the key indicators that the advertising business is improving globally, according to a recent survey of principals of independent advertising and marketing communications agencies around the world by the ICOM global network.
Other positive signs cited include increases in consumer spending, a more upbeat mood about the marketplace and a greater focus by clients on branding rather than on immediate sales. Thirty-eight executives from ICOM member agencies in 27 countries participated in the survey.
“The mood is right to leave our comfort zone and forge ahead,” said Syed Munawar, director, Triton Communications/ICOM, Mumbai, India.
More than half the respondents said they are not only being invited to more new business pitches but also winning more new business while also seeing increased spending from current clients, resulting in organic growth. Agency principals in more than twice as many countries said business is “improving” than those that said it is “not improving” or “staying the same. “
“We’ve received twice as many invitations for high-budget opportunities as last year,” said Ilya Notkin, client service and strategic planning director of Moscow-based Paradigma Communications Agency/ICOM.
Similarly in Latin America, Hernàn Campos, managing director, Publicidad Causa/ICOM, Lima, Peru, said the agency has increased its billings 50% in the last two years, and in the U.S., Jim Bergeson, executive VP, Bridgz Marketing Group/ICOM, Minneapolis, said his agency has more new business prospects now than it has had in the last two years.
“It certainly looks like clients are taking off their crash helmets (because the sky was falling) and putting on their driving gloves,” commented Mike Diccicco, president, Philadelphia-based, Diccicco Battista Communications/ICOM. “Everything’s accelerating: planning, budgeting, decision-making.”
This latest ICOM survey conducted by email the week of May 10 bears out the predictions of ICOM members at the beginning of this year when agencies said they expected things to look much better as the year progressed. “All of the outdoor sites that have been blank are now filled again,” said Sardar Zaheer Zaufran, general manager of marketing, Channel 7 Communications/ICOM, Islamabad, Pakistan.
Respondents in nine countries said clients’ budgets are tracking more than 10% higher this year than in 2010; another eight said budgets are as much as 10% higher, while two reported budgets staying the same and three said budgets are down. “We are in era that can be likened to a horde of rampaging bulls. You have to keep on going and stay with the pack lest you be trampled upon,” commented Nestor V. Reantaso, managing director of corporate affairs, Adformatix/ICOM, Manila, Philippines.
Respondents cited a number of industry sectors that are experiencing growth with FMCG, real estate, financial services, travel & tourism and automobiles getting the most mentions. Agencies also noted that they are seeing continuing increased activity in all aspect of digital and social media.
“We realize every day that the advertising business will never be the same again after the recent global downturn. You have to be faster, more flexible, cleverer, more creative and more business-oriented than ever before,” said Annika Avikson, managing director-partner, AD Angels/ICOM, Tallinn, Estonia.
ICOM is the most geographically balanced of international independent advertising and marketing communications networks with 70-plus member agencies in more than 50 countries. Asian member include Triton Communications, India; MACS909, Indonesia; ADEX Nihon Keizai, Japan; Adformatix, Philippines; and Riverorchid, Vietnam.
