Addressing obstacles to increased Online Ad Spend.

Ad agencies are ready for recovery, according to the “1st Quarter 2010 Survey” from media planning software firm STRATA. Nearly one-half saw a year-over-year increase in business in Q1 2010, and 80% see business returning to normal this year.

While the recession may have pushed many advertisers to shift spending to digital for its accountability and value for money, TV still dominates when it comes to client priorities, according to the agencies surveyed. Fewer than one-quarter of clients were focused primarily on online marketing.

“To advertisers, TV still matters,” said John Shelton, president and CEO of STRATA, in a statement. “But just as radio gave way to television, we can see that TV is slowly giving way to digital.”

Mr. Shelton said that there is still a perception that digital has its limitations in reach and effectiveness and must still be used with traditional media like TV. But he added that “the trend is clear” and digital will continue its rise.

For now, the biggest obstacle to growth is lack of advertiser demand, cited by 36% of ad agencies. More than one-quarter complained about the channel’s effectiveness—typically considered one of its positive qualities.

Despite these perceptions, 69% of agencies said their clients were more focused on digital than last year, compared with just 9% that said attention was decreasing.

In the digital channel, agencies were most likely to say they focused spending on online display (67.9%) and social media (60.7%), followed by search and mobile.

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