PwC has released its 17th annual Australian Entertainment & Media outlook, which forecasts an industry growth of 3 per cent year-on-year (YOY).
According to the report, subscription television, including online streaming, is the quickest growing market and is slated to increase 10.1 per cent YOY by 2022.
Meanwhile, internet advertising is expected to grow 7.7 per cent.
Speaking on the results, PwC Australia’s Entertainment & Media Industry Leader Megan Brownlow said, “Numerous breaches of trust by corporates in Australia and globally over the last year have soured relationships with consumers,” she says.
“Companies that get the consumer trust piece right will take it to the bank and boost investor and regulator confidence.”
“Consistency is a particularly powerful trust driver for traditional media because they have a longer organisational legacy,” she added.
Overall, PwC found internet advertising to have the fastest growing revenue and is predicted to reach $12.7 million of total advertising by 2022.
This equates to roughly a 65 per cent share of total ad spending.
This will mean internet advertising will overtake the internet access market – valued at $11,507 million – as the biggest sector in the entertainment and media industry.
Meanwhile, video advertising will make up roughly 25 per cent of total ad spend by 2022.
The report also touches on data security and ad viewability.
According to PwC, “Advertisers and media buyers are increasingly sophisticated in using data to segment and target potential customers with online advertising. Publishers are also using data more strategically to inform decisions on what content to produce.”
“Consumers are sharing more personal data, albeit unintentionally, as we move into the ‘age of assistance’, a term describing the uptake of artificial intelligence (AI)-enabled digital assistants such as Apple’s Siri, Amazon’s Alexa and Google Home.”
“Over the forecast period we expect privacy to remain a major strategic focus for the digital advertising industry in Australia. We expect its increasing importance will enable publishers with best practice protections to build a trust-based competitive advantage with users and advertisers alike.”
Looking at viewability, the report found ad viewability is higher on desktop than mobile and for inventory sold directly by publishers.
View the full report here.