News Media’s Ad Revenue Plunges By Double Digits For FY17

Creative business corporate work concept: tablet computer PC, modern black glossy touchscreen smartphone with news internet web site, stack of newspapers, cup or mug of fresh coffee and metal ballpoint pen on wooden office table
SHARE
THIS



Australia’s news media sector has reported a double-digit drop in ad revenue for the last financial year, with premium news media websites continuing to struggle in the programmatic sector.

According to the latest News Media Index (NMI), the news media sector posted $2.1 billion in advertising revenue for the last financial year – down 10.9 per cent on the 12 months prior.

Print saw the biggest decline during the 2016-17 fiscal year, down 14.5 per cent to $1.56 billion, while digital news media revenue was up 7.5 per cent during the 2016-17 fiscal year to $463 million, while direct advertisers’ support of national titles grew 4.5 per cent.

News Media Index (FY17)

Revenue from direct advertisers now accounts for 53.8 per cent (up from 51.1 per cent), while print represents 77 per cent of total sector revenue.

The data – collated by Standard Media Index (SMI) – shows that news remains the third largest media sector based on advertising revenue.

The latest NMI data shows that premium news media websites attracted less than 11 per cent of the total programmatic ad market’s revenue in the latest quarter, despite reaching 70 per cent of Aussies aged 14 years and over each month.

Newly-appointed NewsMediaWorks CEO Peter Miller said the NMI shows a trend that premium websites are underrepresented in programmatic revenue as advertisers chase quantity over quality and safety of ad placement.

“Branding has never simply been a numbers game,” he said. “Too often, the impression you buy via third-party ad networks is not the impression you leave your customer.

“The reputational risk that automated placement of ads on third-party networks and alongside user-generated content needs to be addressed. Unlike premium news brands, these sites offer little or no editorial standards or quality control.

“We need to push the reset button on perceptions of news media and ask advertisers and their advisers take a fresh and objective look at the sector.

“News media continues to deliver large, highly-engaged audiences who trust their preferred news source. Digital readership continues to grow, and in a number of cases, print readership has also bucked the trend.”

SMI AU/NZ managing director Jane Schulze said: “Given the ongoing concerns around brand safety, it was surprising to see no marked difference in the level of programmatic advertising being directed towards premium news media.”

Unlike the monthly SMI data which reports agency only revenue, the quarterly NMI
reports all print and digital ad revenue to Australia’s largest news media publishers* from both
agencies and direct advertisers, and is independently verified by SMI.

*The revenue data is taken from NewsMediaWorks’ foundation members, News Corp Australia,
Fairfax Media and West Australian Newspapers, who represent around 90 per cent of the news media
sector.

Please login with linkedin to comment

Latest News

Australia Is Diverse… Does Your Brand Have An Inclusive Digital Presence?
  • Marketing
  • Opinion

Australia Is Diverse… Does Your Brand Have An Inclusive Digital Presence?

As Australia continues to grow and the population becomes more ethnically diverse, it is important that marketers ensure digital environments are more inclusive, especially for those who don’t speak English as a first language, writes Siteimprove’s Haley Doel (pictured below). Having a readable and accessible website is no longer just a high priority for large […]

Opinion

by B&T Magazine

B&T Magazine
**FILE*** A Thursday, Oct. 21, 2010 file photo the Sydney Head Office of Network Ten in Pyrmont, Sydney. Network Ten's Wake Up program and its early, morning and late news will be axed from Friday. (AAP Image/Lee Besford) NO ARCHIVING
  • Advertising
  • Media

Network Ten And MCN Reaffirm Sales Agreement Following CBS Sale

Network Ten and Multi Channel Network (MCN) have today reaffirmed that the sales representation agreement, which sees MCN manage the advertising interests for TEN, ELEVEN, ONE and the online catch-up streaming platform tenplay, will continue. Since the agreement was made in 2015, the Network Ten and MCN trading relationship has been an outstanding success. In […]

by B&T Magazine

B&T Magazine
Pepsi MAX Teams Up With PHD & Time Out For New Data-driven Campaign
  • Advertising
  • Campaigns

Pepsi MAX Teams Up With PHD & Time Out For New Data-driven Campaign

Pepsi MAX has partnered with PHD and Time Out to not only inspire Australians, but also enhance their ability to ‘MAX’ out their summer this year. Through the use of a live dynamic data feed, consumers will be served ads by the brand on events taking place around them that are relevant to their personal […]

AI – To Join It Or To Beat It
  • Media
  • Opinion

AI – To Join It Or To Beat It

I'm afraid we can't let you read this piece Dave! That's a joke about A Space Odyssey 2001, young B&T readers.

Opinion

by B&T Magazine

B&T Magazine
AnalogFolk Opens In Shanghai
  • Advertising

AnalogFolk Opens In Shanghai

AnalogFolk has opened in Shanghai and, as B&T's trusty Funk & Wagnalls atlas tell us, is somewhere near Wollongong.