agency execs grow more positive

05 October 2010

DENVER: Advertising agency executives believe trading conditions should improve over the next six months, a global poll has reported.

Worldwide Partners, a network containing 89 independent shops including Asahi, Kirshenbaum Bond + Partners and 23red, surveyed 150 senior staff from its membership base.

Overall, 26% felt positive about the current climate, 47% were neutral and the remainder adopted a negative stance.

Looking ahead, 41% expressed optimism concerning the likely outlook for six months time.

Elsewhere, 51% of those surveyed stated their clients are largely taking a moderate view at present.

More specifically, 55% of North American respondents described the financial environment as neither good nor bad, a figure standing at 50% in Europe, the Middle East and Africa.

Around a quarter of shops in the US, Canada and EMEA are upbeat, and approximately 40% suggested conditions would improve in six months.

By contrast, 55% of participants in Asia are now in buoyant mood and 73% forecast this should remain the case going forward.

Just 9% of Latin American agencies gave a pessimistic analysis of the contemporary situation, and 75% anticipated even better prospects in early 2011.

In assessing new business opportunities, 41% of contributors identified encouraging trends in the market, and 52% expected more possibilities to arise as time passes.

Such an impression was reflected regarding income levels, with 21% positive as of late 2010, rising to 42% for Q1 2011.

Turning to hiring policies, 31% agreed recruitment patterns were relatively strong, and over 40% predicted the same for six months time.

This latter total reached 50% in Latin America and 43% in North America, falling to 34% in Europe and 27% in Asia Pacific.

"Independent agencies around the world … by their nature, are not sluggish bureaucracies but nimble businesses that are close to customers and consumers," said Al Moffatt, ceo/president of Worldwide Partners.

"As advertising is a leading indicator, it looks good for Asia and Latin American next year, but less so for the West," said Moffatt.

Data sourced from Worldwide Partners; additional content by Warc staff