SMI Data: Aussie Agency Spends Boom For Start Of 2018

SMI Data: Aussie Agency Spends Boom For Start Of 2018
SHARE
THIS



Australia’s media agency market has kicked off 2018 in stellar fashion, with significantly higher advertising demand from a swathe of large product categories delivering a record level of February ad spend and the best ever start to a calendar year.

SMI’s agency data shows demand lifted 7.6 per cent in February to a record level of $544.8 million, which in turn pushed agency bookings for the first two months of CY2018 five per cent higher, ensuring ad spend for the two month period broke through $1 billion for the first time.

Screen Shot 2018-04-05 at 10.26.46 amIn February the digital, outdoor and radio media are all reporting record levels of ad spend for the month, with Outdoor delivering by far the largest growth (+29.1 per cent year-on-year without any lunar month issues). Television grew ad spend by 5.4 per cent to its best February result since 2015.

And the higher demand came from a broad range of advertisers, with eight of the market’s ten largest product categories reporting double digit growth in February. But the highest growth came from the Domestic Banks category which grew ad spend by 56.6 per cent year-on-year as they seek to mitigate the impact of the Financial Services Royal Commission.

Other large categories reporting double digit gains include retail (+11.8 per cent), food/produce/dairy (+16.5 per cent), Insurance (+23.4 per cent), Government (+26.9 per cent as the month featured the SA and Tasmanian elections), toiletries/cosmetics (+27.7 per cent) and restaurants (+21.1 per cent).

SMI AU/NZ managing director Jane Ractliffe said this was by far the best start to a calendar year since SMI bookings began in 2007.

“Breaking through the $1 billion ad spend level so early in the year augers well for continuing demand, especially as we’re yet to see the extra ad spend related to the Commonwealth Games or other major sporting events due this year,” she said.

“It’s also pleasing to see such widespread support from many varied advertiser groups as even at the smaller end of the spectrum we’re seeing categories such as Analgesics lifting spend by 73% and Real Estate agents growing ad spend by 85 per cent from February 2017.”

This is also SMI’s first full data release provided at the end of the month and clearly shows the benefit of re-reporting all data at this time given the increasing lateness of media payments.

“It was clear when we released the interim February data two weeks ago that the market was exceptionally strong in February, but since then we’ve collected an extra $42 million in payments and that has provided an even more accurate picture of the true state of the ad market,’’ Ractliffe said.

Australia’s Agency market is also reporting record ad bookings for the first eight months of this financial year, with the total up 3.1 per cent to a record level of $4.8 billion.

Please login with linkedin to comment

SMI Data

Latest News

GDPR “Could Be A Content Killer”, Says Expert
  • Advertising
  • Media

GDPR “Could Be A Content Killer”, Says Expert

The way the European Union’s General Protection Data Regulation (GDPR) is interpreted could have a severe impact on publishers, according to one expert. The GDPR was introduced on 25 May 2018 to help consumers protect their data and reshape the way organisations approach data privacy through a consent model. Speaking recently at a roundtable event […]

by B&T Magazine

B&T Magazine
Ipsos Appoints Ex-Nielsen Exec As CEO Of South East Asia
  • Media

Ipsos Appoints Ex-Nielsen Exec As CEO Of South East Asia

Ipsos chairman and CEO Didier Truchot has appointed former Nielsen executive Suresh Ramalingam as CEO of South East Asia. Ramalingam’s remit includes Singapore, Malaysia, Thailand, Indonesia, Vietnam and the Philippines, with immediate effect. Ramalingam joins Ipsos from Nielsen, where he worked for more than two decades in various leadership roles covering the Middle East and Africa, South East […]

adblock popup web banner concept. isolated vector
  • Opinion

How To Reach The Unreachables

The unreachables may sound like the Indian caste system but, as you'll learn here, it's some newfangled marketing term.

Opinion

by B&T Magazine

B&T Magazine
Instagram Video: We Are Living In A Vertical World
  • Co-Lab

Instagram Video: We Are Living In A Vertical World

The way people record, share and replay their lives has changed dramatically since the advent of Facebook-owned Instagram. Once a place where only static, filtered photos could be uploaded, Instagram now offers photo and video uploads, shopping features, direct messaging and several other tools serving users and businesses. However, for Instagram head of business Jim Squires […]

by B&T Magazine

B&T Magazine
Yes! It’s Virtual Reality Demystified
  • Co-Lab

Yes! It’s Virtual Reality Demystified

Virtual Reality has been a staple of science fiction for some time, Though, in terms of real-life application, the world is still coming to grips with what the tool can offer us. In recent years, tech experts, doctors, medical students and videographers have used the tool as a way of exploring worlds not normally accessed in […]

by B&T Magazine

B&T Magazine
Facebook Messenger: The New Age Of Communications
  • Co-Lab

Facebook Messenger: The New Age Of Communications

The unparalleled success of Facebook-owned Messenger can be pinned down to its ear to the ground approach with users. Consistently listening to its user base of more than one billion, Messenger’s ability to stay not only on trend but well ahead of it has allowed the app to become a global tool for communication; be that […]

Industry Generates A Record $10.5m For Social Impact
  • Media

Industry Generates A Record $10.5m For Social Impact

UnLtd, the media, marketing and creative industry’s social purpose organisation has announced a total industry contribution of $10.5m to social impact in FY18. The total value of funds, services, inventory and time donated by the media, marketing and creative industry increased by 21per cent compared to the previous financial year due to a growth in […]

Women In Media Profile: Danni Wright
  • Media

Women In Media Profile: Danni Wright

We'd be headlining Danni Wright's Women in Media profile the "Wright stuff" if it wasn't utterly predictable and naff.

by B&T Magazine

B&T Magazine
Posterscope Promotes Two
  • Media

Posterscope Promotes Two

Posterscope, Dentsu Aegis Network’s specialist out-of-home agency, has promoted Ryan Hedditch to the newly created position of national head of strategy and Samantha Summers to Sydney Group Business Director. In his new role, Hedditch is charged with driving the continual improvement and transformation of the Posterscope offering to clients and partners. Summers’ promotion will see her lead […]

Outbrain Accelerates Growth With APAC Promotions
  • Media

Outbrain Accelerates Growth With APAC Promotions

Native discovery platformOutbrain has announced several movements in its regional leadership team, with plans to make more new hires. This comes on the heels of two senior appointments it made in February, after closing a record year in the region with expansion into new markets. Yoav Tourel has been promoted to head of sales for […]

Clems Syd & Extra GUM Unveil YouTube Digital Stage
  • Media

Clems Syd & Extra GUM Unveil YouTube Digital Stage

YouTube EXTRA Gum has launched EXTRA Support Acts, a program created to support Australia’s up and coming musicians by transforming pre-roll ads on YouTube into a digital support stage. It has been created in partnership with Clemenger BBDO Sydney as creative lead, Universal Music Australia and BRING for talent and music strategy and content, MediaCom and YouTube. The […]

OMD Australia Tops 2018 RECMA Rankings
  • Media

OMD Australia Tops 2018 RECMA Rankings

OMD Australia has taken the top spot for Australia’s Number 1 media agency in size, according to RECMA’s 2018 ‘Overall Activity Volume Rankings’ report released last week. Additionally, the company was named first in profile classification with a dominant profile for the 3rd consecutive year, along with vitality ranking and structure ranking. Furthermore, OMD Australia was also named […]

Red Agency Bolsters Sydney Team
  • Media

Red Agency Bolsters Sydney Team

Judging by the image, it seems Red Agency may have had no staff whatsoever prior to this hiring spree.

Nine Appoints Editor For 9Honey
  • Media

Nine Appoints Editor For 9Honey

B&T's editor coincidentally spilled honey on his shirt while typing this. And by typing, we mean copy and pasting.

Y&R Sydney Scores Best&Less   
  • Advertising
  • Media

Y&R Sydney Scores Best&Less  

Y&R wins Best&Less amid rumours the clothing shop its changing name to 'Somewhat OK&Reasonably cheap'.