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European agencies still challenged by economic situation10 May 2012 -
Brussels, 10 May 2012: Following a steady year in 2011, commercial communications agencies across Europe are forecasting an unchanged year in 2012. With challenges such as cost and time pressure, only 22% of agencies expect their markets to grow in 2012, according to the pan-European survey of agency prospects by the European Association of Communications Agencies (EACA).
Based on responses from its National Association members, the EACA survey covers 3 main topics: a business barometer for 2011, changes in client behaviour and development prospects for 2012.
Compared to 2010, 2011 was not regarded as very good for the sector, with 43.5% of respondents reporting average results, 17% finding it rather poor and only 21% considering it good. This shows a decrease compared to last year which was seen by 31% of respondents as good in comparison to 2009.
87% of the respondents report a change in client behavior-in particular in the new media and classical advertising sectors. Due to economic pressure, clients demanded more services for the agreed fees (first ranked) and tried to reduce fees (second ranked). 64% of respondents declared that clients are also looking for cheaper communications solutions.
The forecast for 2012 does not show an improvement with 35% of respondents expecting an unchanged situation and 30% foreseeing a decrease in the agency turnover trend, compared to 22% expecting an increase.
Within this overall prediction of stability, respondents see opportunities for increased expenditure in sectors such as banking, trade and telecommunications, while direct mail, mass media, beer and automobiles are expected to either be steady or even decrease. Pharmaceuticals (public advertising), small ads and chocolate/confectionary are also expected to be steady sectors with not much change in expenditure in 2012.
In terms of opportunities, EACA National Agency Associations consider that the most important factors for the success of commercial communications will be more efficient campaigns (13%), integrated marketing strategies and social media (12%), as well as creativity (11%). Factors such as changes in consumer behaviour and brand management are seen as the least important.
Agencies see themselves as being most affected by both cost & time pressures as well as procurement in the agency selection process, a similar picture to 2011.
The role of pitch consultants, although not seen as very important, is predicted to become more significant by 71% of the respondents.
"The expectation for the industry in 2012 is split between stability and falling turnover", said Dominic Lyle, Director General of EACA. "The economic uncertainty is continuing to exert considerable pressure on agencies across Europe. Since advertising is an important driver of economic growth, it is more important than ever that European governments should do as little as possible to restrict the potential for commercial communications to contribute to the economic recovery."
For further information, please contact:
Tel: + 32 2 740 0711
EU Affairs Manager
Tel+ 32 2 740 0715
The European Association of Communications Agencies (EACA) is a Brussels-based non-profit organisation whose mission is to represent full-service advertising and media agencies and agency associations in Europe. EACA aims to promote honest, effective advertising, high professional standards, and awareness of the contribution of advertising in a free market economy and to encourage close co-operation between agencies, advertisers and media in European advertising bodies.
The EACA National Associations participating in this survey are:
|The European Association of Communications Agencies (EACA) is a Brussels-based organisation whose mission is to represent full-service advertising and media agencies and agency associations in Europe. EACA aims to promote honest, effective advertising, high professional standards, and awareness of the contribution of advertising in a free market economy and to encourage close co-operation between agencies, advertisers and media in European advertising bodies.|