Inflation and interest rates are also top of mind for advertisers, but they are actually helping business in some cases. The report speculates that some advertisers may have succeeded in winning market share from struggling competitors, and points to earnings reports from advertisers who were able to increase profit by passing price hikes on to consumers. Advertiser Perceptions declined to share specific brands. About half of advertisers say that high inflation rates are having a slightly negative impact, while 20% say that they’ve had a slight or major positive impact.
“When we look at the data over the summer, things were worse,” said Eric Haggstrom, director of business intelligence at Advertiser Perceptions. “The economy had deteriorated and advertisers were reducing budgets and headcount. Now we’re seeing the economy improve a little bit, and advertisers are starting to see the light at the end of the tunnel.”
Many advertisers are also continuing to experiment with their media mix in search of the best return on ad spend. Half have increased the number of social platforms they are working with this year, and a third are working with a greater number of connected TV partners.
“When it comes to CTV, this is a trend we are seeing across our research,” Haggstrom said. “Advertisers are spreading out between the streaming services, and not just the major players. They have other options with Peacock, Paramount+, or Tubi, for example.”