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Advertisers Increase Spending, But Consumers Aren’t Buying


Spending is up! Spending is down! It’s just another week in the world of marketing and this time AdAge has both stories running in the same day.

First we have stats from Advertiser Perceptions which show that advertisers are planning on spending more money in the coming 12 months. You would think that an increase in spend, signals confidence in the economy but apparently one thing has little to do with the other.

Advertiser Perceptions CEO Ken Pearl says,

“The biggest surprise was that in the face of what appears to be a weakening economy, optimism is not just maintaining but increasing among advertisers.”

Or maybe advertisers have become delirious from the stress of falling profits and are going on the spending equivalent of a drinking binge. Think I’m off the mark? Check out this chart.

Is that digital and mobile on a downward slope, with rises in TV and newspaper spending?

On the other side of the shrinking dollar, we have an article about how search is a good economic indicator. Preliminary results from the second quarter are showing a downturn in search, except when it comes to deal sites. The logic here is that people search for things they want to buy, so less searching means less buying.

Don’t panic, though. The experts say this is an expected downturn that often comes after the buying frenzy of the holiday season. They say that search will rebound by the time we hit the fourth quarter.

What’s your gut feeling? Are we on an upswing? A downturn? Or are you just happy to see the numbers staying higher than they were in recent years?