Aussie Ad Revenue To Top $16bn In 2017: Magna

Blank list with Australian money,calculator and pencil on a table
SHARE
THIS



Australian advertising revenue is expected to grow by 4.7 per cent this year to top $16 billion, according to IPG Mediabrands’ media intelligence and investment division, Magna.

The new Magna forecast is for a lower growth rate than seen in 2016 at 7.8 per cent.

Digital advertising is expected to grow by 13.5 per cent in 2017 to reach $8.4 billion, a strong follow-up to last year’s 24 per cent digital growth.

“The continued strength of Australian digital spend remains impressive given the almost total penetration of internet access and the already high 53 per cent share of digital as a portion of total campaign budgets,” Victor Corones, managing director of Magna Australia, said.

Within digital, the strongest growth comes from video, with 38 per cent growth expected this year to reach $1 billion.

Social media is expected to have the next highest growth at 20 per cent in 2017. This will stem from 26 per cent growth in mobile social advertising spends, but a stagnation in desktop social-media engagement, which Magna expects to decline in the coming years.

The Asia Pacific (APAC) advertising market will grow by 5.6 per cent in 2017 to US$156 billion – marginally ahead of Magna’s previous forecast of 5.4 per cent.

APAC maintains its position as the second largest region for advertising spend, behind North America (US$196 billion). Growth is expected to slow slightly next year to 5.1 per cent.

This year, APAC will see digital becoming the largest share of advertising budgets, representing 37.8 per cent of spend (or US$59 billion) – slightly higher than television’s 37.7 per cent of budgets.

TV will still grow in APAC by 2.2 per cent this year to US$59 billion and will continue to grow through 2021 despite gradually losing share to digital media.

Print media in APAC will struggle in 2017, with newspaper and magazine advertising sales declining significantly at by 7 per cent and 9 per cent respectively. Radio and out of home will still see low to medium single-digit growth, but are also losing share as a percentage of the total advertising pie.

Global advertising revenues are projected to grow by 3.7 per cent in 2017 to US$504 billion. This is in line with Magna’s previous forecast of 3.6 per cent in December last year.

The 3.7 per cent growth rate represents a noticeable slowdown compared to 2016, which achieved record 5.9 per cent growth. This was expected by Magna, as cyclical events such as global sports tournaments (Olympics, UEFA Champions League, Copa America) and the US elections contributed by approximately US$5 billion dollars to 2016 advertising revenues.

Excluding cyclical events, 2016 growth would be 4.9 per cent, and 2017 growth would be 4.7 per cent. The slowdown is thus very moderate and in fact it is mostly concentrated in two markets – the US and the UK.

In 2018, global advertising growth is expected to re-accelerate to 4.5 per cent as even-year events come back including the football World Cup in Russia, mid-term US elections and the Winter Olympics in South Korea.

Please login with linkedin to comment

Breakfast Radio MAGNA

Latest News

Women In Media Profile: Tanya Orman
  • Media

Women In Media Profile: Tanya Orman

Always wanted to know what makes Tanya Orman tick? Well, this profile's got more ticks than Einstein's HSC results.

by B&T Magazine

B&T Magazine
Ogilvy Brisbane ECD Phil Nobay Departs
  • Advertising

Ogilvy Brisbane ECD Phil Nobay Departs

Ogilvy Brisbane ECD Phil Nobay has departed amid reports of an anonymous willy drawn on the leaving card.

by B&T Magazine

B&T Magazine
Ipsos Appoints Ex-Nielsen Exec As CEO Of South East Asia
  • Media

Ipsos Appoints Ex-Nielsen Exec As CEO Of South East Asia

Ipsos chairman and CEO Didier Truchot has appointed former Nielsen executive Suresh Ramalingam as CEO of South East Asia. Ramalingam’s remit includes Singapore, Malaysia, Thailand, Indonesia, Vietnam and the Philippines, with immediate effect. Ramalingam joins Ipsos from Nielsen, where he worked for more than two decades in various leadership roles covering the Middle East and Africa, South East […]

adblock popup web banner concept. isolated vector
  • Opinion

How To Reach The Unreachables

The unreachables may sound like the Indian caste system but, as you'll learn here, it's some newfangled marketing term.

Opinion

by B&T Magazine

B&T Magazine
Instagram Video: We Are Living In A Vertical World
  • Co-Lab

Instagram Video: We Are Living In A Vertical World

The way people record, share and replay their lives has changed dramatically since the advent of Facebook-owned Instagram. Once a place where only static, filtered photos could be uploaded, Instagram now offers photo and video uploads, shopping features, direct messaging and several other tools serving users and businesses. However, for Instagram head of business Jim Squires […]

by B&T Magazine

B&T Magazine
Yes! It’s Virtual Reality Demystified
  • Co-Lab

Yes! It’s Virtual Reality Demystified

Virtual Reality has been a staple of science fiction for some time, Though, in terms of real-life application, the world is still coming to grips with what the tool can offer us. In recent years, tech experts, doctors, medical students and videographers have used the tool as a way of exploring worlds not normally accessed in […]

by B&T Magazine

B&T Magazine
Facebook Messenger: The New Age Of Communications
  • Co-Lab

Facebook Messenger: The New Age Of Communications

The unparalleled success of Facebook-owned Messenger can be pinned down to its ear to the ground approach with users. Consistently listening to its user base of more than one billion, Messenger’s ability to stay not only on trend but well ahead of it has allowed the app to become a global tool for communication; be that […]

Industry Generates A Record $10.5m For Social Impact
  • Media

Industry Generates A Record $10.5m For Social Impact

UnLtd, the media, marketing and creative industry’s social purpose organisation has announced a total industry contribution of $10.5m to social impact in FY18. The total value of funds, services, inventory and time donated by the media, marketing and creative industry increased by 21per cent compared to the previous financial year due to a growth in […]

Women In Media Profile: Danni Wright
  • Media

Women In Media Profile: Danni Wright

We'd be headlining Danni Wright's Women in Media profile the "Wright stuff" if it wasn't utterly predictable and naff.

by B&T Magazine

B&T Magazine
Posterscope Promotes Two
  • Media

Posterscope Promotes Two

Posterscope, Dentsu Aegis Network’s specialist out-of-home agency, has promoted Ryan Hedditch to the newly created position of national head of strategy and Samantha Summers to Sydney Group Business Director. In his new role, Hedditch is charged with driving the continual improvement and transformation of the Posterscope offering to clients and partners. Summers’ promotion will see her lead […]

Outbrain Accelerates Growth With APAC Promotions
  • Media

Outbrain Accelerates Growth With APAC Promotions

Native discovery platformOutbrain has announced several movements in its regional leadership team, with plans to make more new hires. This comes on the heels of two senior appointments it made in February, after closing a record year in the region with expansion into new markets. Yoav Tourel has been promoted to head of sales for […]

Clems Syd & Extra GUM Unveil YouTube Digital Stage
  • Media

Clems Syd & Extra GUM Unveil YouTube Digital Stage

YouTube EXTRA Gum has launched EXTRA Support Acts, a program created to support Australia’s up and coming musicians by transforming pre-roll ads on YouTube into a digital support stage. It has been created in partnership with Clemenger BBDO Sydney as creative lead, Universal Music Australia and BRING for talent and music strategy and content, MediaCom and YouTube. The […]

OMD Australia Tops 2018 RECMA Rankings
  • Media

OMD Australia Tops 2018 RECMA Rankings

OMD Australia has taken the top spot for Australia’s Number 1 media agency in size, according to RECMA’s 2018 ‘Overall Activity Volume Rankings’ report released last week. Additionally, the company was named first in profile classification with a dominant profile for the 3rd consecutive year, along with vitality ranking and structure ranking. Furthermore, OMD Australia was also named […]

Red Agency Bolsters Sydney Team
  • Media

Red Agency Bolsters Sydney Team

Judging by the image, it seems Red Agency may have had no staff whatsoever prior to this hiring spree.

Nine Appoints Editor For 9Honey
  • Media

Nine Appoints Editor For 9Honey

B&T's editor coincidentally spilled honey on his shirt while typing this. And by typing, we mean copy and pasting.

Y&R Sydney Scores Best&Less   
  • Advertising
  • Media

Y&R Sydney Scores Best&Less  

Y&R wins Best&Less amid rumours the clothing shop its changing name to 'Somewhat OK&Reasonably cheap'.