GroupM Investment Forecast For Australia: TV On The Rise As Digital Slips

Watching tv and using remote control
SHARE
THIS



GroupM has updated its 2018 ad investment forecasts and released its initial 2019 outlook.

GroupM predicts $24B in net new advertising investment this year, the best annual increment since the bounce back from the global recession in 2010 when $26B was added to investment.

GroupM estimates total advertising investment will grow by 4.5 per cent this year and by 3.9 per cent in 2019.

GroupM also reported that 2017 investment grew by 3.5 per cent, higher than the 3.1 per cent earlier predicted.

In terms of Australian markets, GroupM found digital is slipping while TV’s per cent of media share is on the rise.

Per cent change 2017 2018 2019
Digital total 7.0 7.4 6.8
Media total YOY per cent change 2.1 3.4 3.4
Per cent share of media          2017 2018 2019
TV total -3.0 -0.8 0.3
Digital total 7.0 7.4 6.8
Media total YOY per cent change 2.1 3.4 3.4
Media in AU$M 2017 2018 2019
Digital total 7,917 8,503 9,086
Media total AUD m 15,620 16,154 16,711

 

Globally, increasing investment by advertisers in digital ad formats continues as the predominant theme in GroupM’s latest report.

As well as this, digital advertising will tally to $198B in 2017, $221B in 2018 and $243B in 2019.

Digital investment grew by 15 per cent last year, higher than the 12 per cent GroupM had predicted in December.

Twelve per cent growth is predicted in digital for 2018 and 10 per cent for 2019.

Digital’s share for 2018 will rise to 39 per cent, up from the 36 per cent GroupM earlier predicted.

In 2019, GroupM expects digital’s share to reach 42 per cent.

Digital advertising will account for 95 per cent of net new global advertising growth in 2018 and 99 per cent in 2019.

Excluding China, Facebook and Google captured 135 per cent of the growth in digital advertising investment in 2017 according to GroupM’s analysis.

While still a tough story for other digital media vendors, this is lower than GroupM expected.

GroupM anticipated that these two companies would account for 186 per cent of digital’s growth, but this is mitigated by GroupM’s expanded estimate of the total digital market with better representation of smaller advertisers (or the long tail of advertisers who often do not employ agencies).

GroupM also qualifies this assessment with the observation that the line between “digital” and “broadcast” continues to become less distinct.

Ad revenue flowing into the IP-delivered services of broadcast TV brands is counted as “digital.”

GroupM observes that advertising’s share of global GDP peaked between 2004-2006 at 0.85 per cent (that is under 1 per cent of global economic effort) and has declined to 0.68 per cent forecast for 2018.

Part of this is big advertisers controlling costs more closely in low growth environments. Younger consumer economies, where per- capita advertising investment is lower, are another factor.

However, other factors impacting advertising’s lower share of global GDP are measurement issues that could be solved.

These include the potential under measurement of digital advertising expenditures and difficulty quantifying the long tail of advertisers — the number one source of advertising growth.

Futures Director Adam Smith said, “We’d like to have better intelligence on the ways investment dollars are flowing to digital.

“Digital ad revenue is reported either in whole, or by type, principally display and search, but never discriminates between large and small media owners, nor the short and long tail of advertisers who buy with or without agency support.

“While the same concern applies to other media, digital is unique in its long tail being dominated by global vendors. Because digital is mostly walled gardens, a country is doing well if 20 per cent of its digital ad investment is properly categorized.”

The United States, China, the United Kingdom, Japan, India and the Philippines are the biggest growth contributors globally.

Please login with linkedin to comment

ad investment GroupM

Latest News

IsoWhey launches #YouGotThis Weight Management Campaign Via Indie Agency Urban
  • Advertising
  • Campaigns

IsoWhey launches #YouGotThis Weight Management Campaign Via Indie Agency Urban

Australia’s leading health and wellbeing brand IsoWhey has launched its latest national campaign, ‘#YouGotThis’. Created by Urban, the campaign highlights the real-life struggles Australians face on their weight management journey. A journey made easier through perseverance, and a little help from IsoWhey. The #YouGotThis campaign is IsoWhey’s biggest marketing investment to date, with executions running […]

Taking A stand? Just Do It…Maybe
  • Marketing
  • Opinion

Taking A stand? Just Do It…Maybe

In this guest post, creative and strategy director at WE Buchan, David Coupland (pictured below), takes a look at the fallout from Nike’s Colin Kaepernick campaign and says what it also does is show the importance brands now play in our lives… Nike’s decision to feature Colin Kaepernick as the face of their 30th anniversary “Just Do It” campaign […]

Opinion

by B&T Magazine

B&T Magazine
How To Optimise Branded Keywords
  • Marketing
  • Opinion

How To Optimise Branded Keywords

In this guest post, CEO of Delacon, Michael Center (pictured below) talks the value of branded keywords for marketers and offer his tips on getting the best from yours… Branded keywords are an essential part of the digital marketing strategy for many large businesses. Trading on the recognition and equity of a brand’s name, some of the country’s […]

Opinion

by B&T Magazine

B&T Magazine
OLYMPUS DIGITAL CAMERA
  • Marketing
  • Opinion

Expertise First, Influence Second: When Influence Is A By-Product Of Expertise

In this guest post, Taryn Williams, CEO and founder of influencer and creative talent marketplace theright.fit, explains why influence should be a by-product of success, not the foundation for it… Like any form of advertising and promotion, influencer marketing is not without its controversies. Earlier this year Australia’s Federal Minister for Health, Greg Hunt, ordered […]

Opinion

by B&T Magazine

B&T Magazine
Ford & Facebook Invite Aussies To Personalise 2018 Mustang With New In-App Experience
  • Campaigns
  • Marketing
  • Technology

Ford & Facebook Invite Aussies To Personalise 2018 Mustang With New In-App Experience

Ford Australia has unveiled a new innovation that showcases the iconic Ford Mustang through a collaboration Facebook and Instagram. The interactive campaign invites Facebook and Instagram communities to take part in a live poll to identify Australia’s ultimate Mustang design. Targeting performance car fans, along with design lovers and image-conscious consumers, Ford and its partner […]