Carat Says Aussie Ad Spend Next Year Will Surge 2.4 Per Cent

Full-frame of Australian fifty, twenty and ten dollar notes
SHARE
THIS



Global media agency Carat has released its predictions for what’s going to happen in the ad market next year, with Australia predicting an increase 2.4 per cent to reach $13.6 billion.

The forecast previously was pinned at just 1 per cent, however with economic conditions in Australia showing improvement, Carat rearranged the numbers from its March release to now 2.4 per cent in September.

Commenting locally on the Carat Advertising Expenditure forecast, Simon Ryan, CEO Carat Aus & NZ, said: “For the Australian Market, it is encouraging to see a return to positive growth this year with a 2.4 per cent increase to reach AUD $13.6billion and a further expansion in 2016 at +2.8 per cent.

“There is a clear and absolute focus that digital media is driving growth as its share of total advertising spends continues to inflate year on year and digital is now the leading media in Australia. Digital display is the rising star driven substantially by online video, programmatic and mobile. With cross-device measurement tools becoming more sophisticated and access to premium content increasingly available, greater investments from linear TV budgets are being allocated to digital screens.

“We are experiencing a significant change in market sentiment and consumer confidence which started in the first 8 months of 2015 and is expected to be in play well into 2016. This will be further accelerated by spending on elections for Federal Government, Australian Capital Territory and Northern Territory and the Rio Olympic Games in August 2016.

“Significant and major new product launches led by leading advertising categories including Automotive, Retail, Banking and Telecommunications will also see continued growth in the Australian advertising market in 2016, all driving growth of around est. 2.8 per cent on annual spend.”

When it comes to the global media spends and where brands are putting their money, Carat predicts declines in newspapers and magazines (on trend from its prediction this time last year), with rises in all other markets, at the current prices.

Predictably digital had the biggest forecast, with 2016 predicted to see an increase of 14.3 per cent.

Image via the Carat report.

Image via the Carat report.

Looking at the global percentage share of advertising spend, television continues to dominate around the world with a 41.3 per cent predicted share, and digital seeing the second highest with 26.5 per cent.

Image via the Carat report.

Image via the Carat report.

Carat’s global chief strategy officer, Sanjay Nazerali, said: “Digital continues to grow but at a more moderate pace. This explains the slight decline in digital prices, as marketers have moved from an ‘experimental’ to a more established use of digital.”

Please login with linkedin to comment

Latest News

SpotX Appoints Gavin Buxton As Asia MD
  • Advertising

SpotX Appoints Gavin Buxton As Asia MD

Video advertising platform SpotX has announced it has appointed Gavin Buxton as managing director of Asia to lead the company’s expansion in the region. Buxton has over 17 years’ global experience in the digital advertising space, having worked in leadership roles at tech and publishing companies, including Microsoft, Turner Broadcasting, and LinkedIn, with the last […]

Big Mobile Doubles Down On Ad Tech & Rebrands
  • Advertising
  • Technology

Big Mobile Doubles Down On Ad Tech & Rebrands

B&T Awards 2017 finalist Big Mobile has unveiled a fresh look to reflect its new ad tech credentials. The company successfully pivoted its business from ad network to mobile ad tech vendor when it announced a joint venture (JV) with Widespace in October last year. As a result of the business changes, Big Mobile wanted […]

March One Appoints New Senior Account Manager
  • Advertising

March One Appoints New Senior Account Manager

Independent ad agency March One has appointed a fresh face to the team, with Melanie Tozer to reinforce its mission to put humans first as a senior account manager. Tozer (pictured above), an up-and-coming talent from New Zealand, will align her extensive experience in FMCG marketing with March One, having worked on accounts for Bunnings […]

What To Expect From The App Economy In 2018
  • Opinion
  • Technology

What To Expect From The App Economy In 2018

Here's an insightful, authoritative synopsis of the app economy. So, you're right, it wasn't written by a B&T journo.

Opinion

by B&T Magazine

B&T Magazine