The $15 Billion Opportunity? The 17 Things To Know About The Future Of Australian Media

The $15 Billion Opportunity? The 17 Things To Know About The Future Of Australian Media
SHARE
THIS


What best describes you?

Australia’s highly competitive media industry is brimming with opportunities and challenges for incumbents as the advertising pie grows to over $15 billion.

That’s the chief finding of Roy Morgan’s just released State of the Nation: Media Report that looks at challenges and opportunities facing the industry as the rate of change speeds up and consumers explore new ways of engaging with media including the impact of key disruptive trends powered by digital innovation.

The key findings of the report are listed at the bottom of this article.

Roy Morgan CEO Michele Levine and leading futurist Dr Ross Honeywill have just made details of the report public, with Levine noting the Australian media industry is changing rapidly with the rise of digital interactive platforms driving strong online advertising growth.

“The disruptive trends sweeping a growing media industry are transforming the ways Australians consume media and, in an age when everyone is always ‘on’, it is vital media companies connect directly with their audiences and know exactly who their audiences really are,” Levine said.

“The total Australian advertising market grew to $15.25 billion in 2016, up $1.1 billion ( up 9.3 per cent) on 2015 and up $2.3 billion (up 17.9 per cent) over the last two years. Driving the increases is a growing online spend – specifically Online Search, Online Classifieds and Online Display ads, which today comprise almost half of the total advertising spend,” she said.

Key findings of the report included:

  • Media Matters – Advertising market now worth over $15 billion
    Overall Advertising revenue in 2017 is estimated at over $15.25 billion, up 8% on 2016.
  • Advertising spend online is now almost 50% of the total
    Combined online ad spending now comprises nearly half of all Australian advertising split between Online Search & Directories on 22%, Online Display ad on 18% and Online Classifieds on 9%. TV still captures just over 25% of all advertising spending ahead of Print media on 13%, Radio on 7%, Outdoor on 5% and Cinema around 1%.
  • Traditional media model has been shattered
    Against this background of ‘havoc’ being wreaked on traditional media owners, new research from Roy Morgan shows that while the traditional business models for media are shattered, media is most definitely not.
  • Australia’s transition to an experience economy is driving changes in media consumption
    Our spend on leisure and entertainment is increasing at a faster rate than discretionary commodities. We now spend substantially more on leisure and entertainment ($137 billion) than on non-grocery discretionary commodities ($105 billion) and the trend is clear and encompasses the broader disruptive trends impacting society noted above.
  • Internet usage becomes a part of daily life
    The reality is the internet is no longer something that Australians dabble with every now and then. For most, they are constantly ‘on’, accessing information, creating and sharing content and communicating with their social communities and others.
  • Facebook and YouTube reach is greater than ever before
    The big two new media players have become mainstream with 16.6 million Facebook users and 15.4 million YouTube users in an average 7 days – and they are still growing.
  • Digital changes are not linear, they are exponential and accelerating
    The rate of change we are now seeing has accelerated dramatically.  Netflix for example exploded within a 2 year time period – now over 5.8 million Australians are on Netflix.
  • Long term decline for traditional media usage
    Viewing of traditional Free-to-Air TV is down from 96% in 1998 to just over 88% now. Reading of any major newspaper in print is down from 84.5% in 1998 to 44% now. Magazine reading is down from 88% in 1998 to 69% now. Commercial radio listening is down from 73.5% in 1998 to 62% now. And use of the Internet has risen from around 15% in the late 90s to near ubiquity at 94% now.
  • However – traditional media is adapting and being consumed in new ways
    95.6% of Australians watched Free-to-Air TV in 2002, and though this number has now declined to 88.4% – when one includes new forms of TV including Pay TV/ SVOD – watched by 27.1% of Australians and boosted in recent years by the advent of Netflix and its competitors, and Catch-up TV Website or Apps – watched by 16.5%, the total number of Australians watching some form of TV at 94.1% has barely changed over the past 15 years.
  • Newspapers are also adjusting to the digital world
    Similarly to TV, readership of print newspapers has declined from 84.5% in 1998 to just over 44% today, but this hides the take-up of Newspaper Mastheads via digital means. Readership of Newspapers via Print, Online or Apps is now 65.2%, and has increased over the last four years – it was 63.3% in 2013. The take-up of digital newspaper readership is now faster than the decline in print readership.
  • Australians are consuming more media across multiple channels simultaneously using multiple devices
    Now 43% of Australians agree ‘I like to surf the net whilst watching TV’ – up from 27% in 2011 and the average hours per week spent using media has increased to 50.4 hours from 47.4 hours in 2013 – up 6.3%.
  • Australians still mainly get their news from TV, although the Internet is catching up
    69% of Australians mainly get their news from TV – 64% via Free-to-Air TV and 12% via Pay TV, Fetch TV etc. while 48% now mainly get their news from Newspapers – including 33% from printed editions and 25% from Newspaper websites or apps. Over 50% of Australians now mainly get their news via the Internet in some form.
  • TV News far ahead of social media for trust
    More Australians trust TV news (41.5%) than other forms of media; 38% nominate Free-to-Air TV and 4% turn to Pay TV, eg Foxtel, Fetch TV. 25% of Australians trust Newspapers the most with 13.5% trusting print editions and 12.5% trusting Newspaper websites or apps. 16.5% trust radio and only 21% mention any online media form as their most trusted source of news – including just 4% for Social media and 3% for Newsfeed sites.
  • Media Now
    A key dynamic differentiating traditional and new media is that traditional media businesses are channel agnostic whereas Google and Facebook are channel specific but business agnostic!
  • Rise of Direct to Consumer Media models
    Brands and content creators are going ‘Over The Top’ of traditional media to reach audiences direct. ‘Over The Top’ media delivers film and TV content via the internet, without requiring users to subscribe to a traditional cable or satellite pay TV service.
  • Challenges & Opportunities for Disruptors
    As disruptors to the traditional media model become mainstream there are problems and opportunities galore for both traditional media, and even those early waves of disruptors. The speed of change in the industry has increased and the golden rules these days as employed by those who currently enjoying success seem to be the move towards zero friction, the right to forget money, a move away from ownership, communities of interest and increasing relevance and engagement through hyper-personalisation.
  • Challenges & Opportunities for Consumers
    Humans rule. For consumers the threats are around ‘fake news’, privacy, security, and some would say simply ‘too much….’ Today the traditional media hold consumers’ trust.

Levine believed the migration of advertising spend to digital platforms gives new prominence to the age old question of trust. The Roy Morgan State of the Nation Media Report explores the importance of trust to traditional media companies.

“The data reveals that traditional media enjoy high levels of trust, while their newer social-media centric competitors don’t. The importance of building this trust in a future overwhelmed by fake news and consumer choice is more important than ever for retaining and building audiences.

“Trust isn’t just an issue media companies have with consumers, companies must use data science like the in-depth measurement analytics provided by Roy Morgan to build trust with advertisers hungry for accurate and timely measurement of different media channels.

“Roy Morgan has evolved fast with the changing landscape and now offers products including digital evaluation tools in collaboration with Telstra, which reach a panel of over 19 million internet connected devices, and Roy Morgan Pixel which collects real-time information about a user’s actions in the digital landscape and can deliver daily reports on reach, frequency and detailed consumer profiling at an unrivalled granularity.

“These innovative digital products enable advertisers to know almost in real-time who is engaging and responding to their brand online – right now and right down to postcode.”

Please login with linkedin to comment

Latest News

Suncorp & Flight Centre Share Their Bricks-And-Mortar CX Strategies
  • Marketing

Suncorp & Flight Centre Share Their Bricks-And-Mortar CX Strategies

In the latest episode of the Marketing Dividends series presented by the AANA, the marketers behind two of Queensland’s biggest brands offer insights into how physical retail presence can be used to drive customer experience and to build brands. Joining host James Hier were Mark Reinke, chief customer experience officer at Suncorp; and Darren Wright, […]

Content Marketer Mahlab Recruits Three New Editors
  • Media

Content Marketer Mahlab Recruits Three New Editors

Content marketing agency, Mahlab, continues to grow its extensive in-house content team with the appointment of three new editors. Mahlab founder and managing director Bobbi Mahlab said: “These talented editors bring further depth to our tech, finance, healthcare and consumer practices which will add additional value to our business and our clients.” Graham Brown has […]

Australia Post Wheels Out ‘Informative Choir’ For Its Chrissy Campaign Via Y&R Melbourne
  • Advertising
  • Campaigns

Australia Post Wheels Out ‘Informative Choir’ For Its Chrissy Campaign Via Y&R Melbourne

Australia Post has unveiled a new campaign via Y&R Melbourne that focuses on the build-up preparations for Christmas and the role the postal service plays in making delivery and collection services easier. The integrated campaign spans TV, outdoor, digital and social channels, with Shipster – Australia Post’s free shipping membership service that launched last month […]

Former Saatchi GCD & Red Robyn Agency Founder Form Agency Robyn&Leon
  • Advertising
  • Marketing

Former Saatchi GCD & Red Robyn Agency Founder Form Agency Robyn&Leon

Former Saatchi & Saatchi Melbourne group creative director Leon Wilson is joining forces with branding and design agency Red Robyn’s founder Robyn Brazenall to evolve the agency’s offering. Red Robyn have been creating and supporting some of Australia’s most recognised brands for over 15 years. The new agency, Robyn&Leon, is restructuring around three verticals… branding […]

Men’s Health Appoints A Fitness Director
  • Media

Men’s Health Appoints A Fitness Director

Men’s Health Australia has announced one of the world’s top fitness coaches, Chief Brabon, will join the team in the capacity of fitness director. Brabon, alongside his business partner and wife, Emilie Brabon-Hames founded the ultimate transformation program TransformationCoach.com which has radically changed the lives of Australian celebrities, including: Larry Emdur, and most recently, music sensation and Men’s […]

Infographic: AI, Gen Zs & Blockchain, It’s The Top Trends For 2018!
  • Marketing

Infographic: AI, Gen Zs & Blockchain, It’s The Top Trends For 2018!

Want to know what every business will be talking about in 2018, but want to know it first? Well, business education site Onlinembatoday.com and news site Forbes has done just that and, thankfully for you, it all comes in easily digestible infographic form. According to the results, 2018 is set to be a big year for Artificial […]

by B&T Magazine

B&T Magazine
News Corp, Fairfax & Nine To Lift Their Ad Targeting Game With Creation Of Digital ID Co-Op
  • Advertising
  • Marketing
  • Media

News Corp, Fairfax & Nine To Lift Their Ad Targeting Game With Creation Of Digital ID Co-Op

Three of Australia’s largest digital publishers have come together to explore the creation of a local anonymised digital identity cooperative to enable better ad targeting. News Corp Australia, Fairfax Media and Nine have united to create the co-operative, which would bring together and leverage the combined authenticated user ID assets of the three publishers. Following […]

by B&T Magazine

B&T Magazine
LOS ANGELES, CA - JULY 30:  Co-chairman of The Weinstein Co. Harvey Weinstein arrives to The Weinstein Company and Lexus Present Lexus Short Films at The Regal Cinemas L.A. Live on July 30, 2014 in Los Angeles, California.  (Photo by Alberto E. Rodriguez/Getty Images)
  • Opinion

Harvey Weinstein And The End Of The Alpha Male

It’s rare we host a playwright on B&T, but today we’re privileged to do just that. Here, Melbourne writer Ron Elisha (pictured below) offers his take on the whole Harvey Weinstein saga and, he predicts, some good may come of it yet… I am a member of that rapidly disintegrating generation raised on reruns of Mutual Of Omaha’s Wild Kingdom […]

Opinion

by B&T Magazine

B&T Magazine
Ten Promotes Annabelle Herd To Chief Operating Officer
  • Media

Ten Promotes Annabelle Herd To Chief Operating Officer

Network Ten has announced the appointment of Annabelle Herd to the role of chief operating officer, reporting to Ten CEO, Paul Anderson. Herd was previously Network Ten’s director of corporate and regulatory Affairs. Her new role covers a range of business functions and is effective immediately.  Anderson said: “Annabelle has been responsible for leading Ten’s corporate […]

by B&T Magazine

B&T Magazine
OMD Announces New MD For Melbourne
  • Media

OMD Announces New MD For Melbourne

OMD unveils new Melbourne MD, and it certainly wasn't among any of B&T's picks. Not that we were picking, mind you.

Sydney Festival Chooses Brightcove To Enhance Online Video Content
  • Media

Sydney Festival Chooses Brightcove To Enhance Online Video Content

Video cloud service Brightcove has announced that Sydney Festival has selected the platform to improve its user experience through online video content. Brightcove will do so by removing third-party branding and pre-roll ads, as well as adding autoplay functionality, ahead of the event in January. Leveraging the Brightcove video platform to host and publish video […]

Does Your Christmas Marketing Suck?
  • Opinion

Does Your Christmas Marketing Suck?

Remember the old Palmolive soap ad that asked, "Don't wait to be told"? This is sort of similar, albeit sans any suds.

Opinion

by Peter Harris

Peter Harris
Queensland Anti-Porn Crusaders Cop Ad Ban
  • Campaigns

Queensland Anti-Porn Crusaders Cop Ad Ban

We have a strident anti-pornography policy at B&T. Earphones must be worn at all times and strictly no little people.

by B&T Magazine

B&T Magazine
Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful
  • Advertising
  • Campaigns
  • Marketing

Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful

Health and wellbeing company Nature’s Way is celebrating the achievements of kids in a series of relatable and entertaining online videos that tug at the heart strings of parents. Instead of using actors to tell the brand story of Nature’s Way’s Kids Smart supplement range, Storyful has helped Wavemaker to license user-generated content clips of […]

DEC PR Wins Hisense Account
  • Marketing

DEC PR Wins Hisense Account

Electronics and whitegoods specialist Hisense has announced it has appointed DEC PR to lead its strategic communications remit in the local market, following a competitive tender process. DEC PR will work to support its brand building activities and managing corporate communications. The agency’s work will integrate closely with Hisense’s other marketing partners. Andre Iannuzzi, marketing […]

QMS Media Expands Presence In Melbourne With New Digital Billboard ‘The G’
  • Advertising
  • Media

QMS Media Expands Presence In Melbourne With New Digital Billboard ‘The G’

Outdoor media company QMS Media has strengthened its digital outdoor presence in Victoria, unveiling an iconic digital billboard in the heart of Melbourne’s famous sporting precinct. The launch of ‘The G’ sees QMS’ landmark digital portfolio ‘bookending’ arguably one of the most iconic and in-demand digital outdoor locations in Australia – Richmond Station Bridge – […]

HSBC Sydney 7s Creates New Visual Identity For 2018 Via Digilante
  • Advertising
  • Campaigns
  • Marketing

HSBC Sydney 7s Creates New Visual Identity For 2018 Via Digilante

As part of the HSBC World Rugby Sevens Series, the Sydney 7s event returns in January complete with a new brand identity, creative strategy and media campaign. With the 2017 Sydney 7s a sell-out event, the challenge for 2018 was to carry that momentum into the third year, defining Sydney’s place as the new ‘go-to’ […]

Bound Round Launches Family Travel Publication for Aussies
  • Media

Bound Round Launches Family Travel Publication for Aussies

Family travel platform Bound Round has announced the launch of its first e-magazine to Australian consumers. Travel Bound is a family-focused, digital quarterly publication available on all Virgin Australia flights through the carrier’s in-flight entertainment system, and is also available for consumer download via the Bound Round website. Bound Round founder and CEO Janeece Keller […]

SBS Unveils New Look, New App For SBS News
  • Media

SBS Unveils New Look, New App For SBS News

Do you like say "I only watch SBS" in an attempt to sound smarter than you are? Well, why not pretend to read this too?

by B&T Magazine

B&T Magazine
Ex-Samsung CMO Joins Amazon Australia As Marketing Director
  • Marketing

Ex-Samsung CMO Joins Amazon Australia As Marketing Director

Amazon Australia has appointed former Samsung Electronics chief marketing officer (CMO) Arno Lenior to lead its marketing division. Lenior worked as Samsung’s CMO for more than three years before departing in 2015. According to his LinkedIn profile, he has also held CEO roles at VR company Virtical and brand consultancy Blue Ocean Brands, and joined […]

by B&T Magazine

B&T Magazine
News Corp Names Its Car Of The Year
  • Marketing

News Corp Names Its Car Of The Year

News announces its annual Car Of The Year and it's not what you'd expect. Well, we certainly didn't expect it anyway.

Aussie Tennis Open & Country Road Announce New Partnership
  • Marketing

Aussie Tennis Open & Country Road Announce New Partnership

The Australian Open has partnered with iconic Australian clothing and lifestyle brand Country Road to supply the uniforms for next year’s tournament. Confirmed today as the official fashion lifestyle Partner of Australian Open 2018, one of Australia’s most loved brands will be worn by thousands of tournament staff at Melbourne Park in January. On-court officials including the chair and […]

Andrew O’Keefe Quits His Weekend Sunrise Duties
  • Media

Andrew O’Keefe Quits His Weekend Sunrise Duties

After 12 years with Weekend Sunrise, Andrew O’Keefe has decided to step away from his hosting and reporting duties. O’Keefe will continue his full-time role as host of Seven’s quiz show The Chase Australia, as well as focus on other projects with the Network. “The ideal job is doing work you love with people you love,” O’Keefe […]

Study: Brand Loyalty Hinges On Customer Support Experiences
  • Marketing

Study: Brand Loyalty Hinges On Customer Support Experiences

Fast and effective support will be a competitive differentiator for companies looking to win over digitally transformed customers and employees, new research has revealed. According to a study by IDC and LogMeIn titled Support Services as a Competitive Differentiator, nearly 67 per cent of consumers said that customer satisfaction was more important than price when […]

OMA Appoints Red Ant Design To Build Industry’s First Automated Proposal Platform
  • Advertising
  • Media

OMA Appoints Red Ant Design To Build Industry’s First Automated Proposal Platform

The Outdoor Media Association (OMA) has announced the appointment of Red Ant Design to build the out-oh-home (OOH) industry’s first automated proposal platform (APP). After an extensive global search and industry consultation, the decision to build the system in-house with a local Australian company was made. The APP will be built in an agile process, […]