The $15 Billion Opportunity? The 17 Things To Know About The Future Of Australian Media
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.”
Latest News
Scroll Media Recruits Costa Panagos From Twitch
Digital publisher network Scroll Media has employed ex-Amazon Twitch gaming executive Costa Panagos (lead image) to strengthen its Scroll Gaming capability. Panagos is highly experienced in game advertising and media sales professional with two years in account management at Twitch and three years in media sales at News Corp, so will bring his extensive media agency […]
Year13, Microsoft & KPMG Australia Launch AI Course For Gen Zs
School-leaver service Year13 has launched a new Artificial Intelligence course to upskill young people in AI, made in collaboration with Microsoft and KPMG, at an event to rally industry support behind youth AI fluency. The free online course AI Amplified which is part of Year13’s Academy aims to provide all young people with the opportunity […]
General Motors Snares Heath Walker From Scania
General Motors has announced the appointment of Heath Walker (lead image) as the new marketing director for GM Australia and New Zealand, effective April 23, 2024. Walker brings a wealth of marketing and communications experience gained from working across various industries, including IT, sporting, and auto – notably Tesla, Nissan and most recently, Scania in […]
VML Launches New “Envoyage” Brand For Flight Centre
VML unveils new brand for travel operator Flight Centre. Alas, no sign of those paid actors pretending to be pilots.
Subaru Places Media Account Up For Review
Subaru puts media up for review, as adland journos get set for mandatory "agency drives off with..." headline.
TV Ratings (17/04/2024): Contestants Faced With Harsh Realities As Alone Australia Heats Up (Or Cools Down)
Alone still doing the business for SBS. Overly long train journeys not doing the business, but they persist anyway.
Ben Fordham Loses Number One Spot As Ray Hadley Celebrates 156th Ratings Win
The radio numbers are in! Discover who's off for a boozy lunch today & who's waiting for the dreaded HR death knock.
Gourmet Ice Cream Brand Connoisseur Launches New “Thrill Your Senses” Iteration, Via SICKDOGWOLFMAN
Rattling the old "truth in advertising" adage comes this ice-cream spot full of noticeably thin people.
Paramount’s Global Sales Boss: ‘Australia’s Converged Model Is A Blueprint For How I’d Like All Of Our Markets To Be’
Paramount's global sales boss gives local sales ops the thumbs up. Didn't weigh-in on the Lisa Wilkinson debacle.
TikTok Starts Testing Its Instagram Rival In Australia
In exciting news for piano playing cats & brattish pranks in shopping centres, TikTok unveils its Insta rival plans.
Man Wrongly Named By Seven As Bondi Killer Hires Lawyers
Struggling to save for a house deposit? Why not get wrongly identified by Sunrise!
Smartsheet Appoints Indie Agency Sandbox Media To Its Media Account
Can't stand your colleagues? Like to dob them in when they miss a deadline? These work management platforms are ideal.
Boss Not Letting You Come To Cannes In Cairns? Use This Business Case To Convince Them!
Stingy boss won't spring for a ticket to Cairns? Add this to your persuasive argument repertoire. Or grovel.
Alt/shift/ Brisbane Builds Portfolio With Ausbuild Creative, PR, Content & Social Account Win
The Brisbane comms/PR agency lands constructor Ausbuild. Also hoping for a discount on its new glass conservatory.
Young Guns Versus The Old Guard: Who Adds More Value to Our Industry?
Cannes In Cairns poking this hornet's nest in a lively debate. Just so long as the oldies can get up the stairs.
70% Of Aussies Don’t Have Green Power Plans ENGIE Says In Major Brand Campaign Via HERO
Are you the notorious "light leaver on-er" in your flatshare? Quell any infighting with this green energy news.
PrettyGood Launches Offering Brand & Media Solutions For Australasian SMEs
B&T applauds the charitable nature of this new agency. Although we'd hate to see it impact any Chrissie present sends.
A Blunt End: Dolphins Medicinal Cannabis Sponsorship At Risk
Yes, it's another NRL drug story. Yet, thankfully it doesn't involve coke in Kuta during the off-season.
Slew Of New Creative Hires At Leo Burnett Australia
Ahhh, all black! The outfit of choice for agency creatives, David Jones staff and everyone in Melbourne.
Under Armour Unveils Local “Live in UA” Campaign
American apparel brand set for yet another tilt at the Aussie market, as Nike declares "we'll see about that".
Pepsi Launches New Look, Refreshing Classic Fashion Staples Via Special PR
Are you always the bridesmaid, never the bride, as the old saying goes? How do you think Pepsi feels?
Pure Blonde Returns To A Place Purer Than Yours In New Campaign Via The Monkeys
B&T's always been a huge fan of the 'drink yourself thinner' diet plan. So big thanks to Pure blonde, vodka & tequila.
Spotlight On Sponsors: Carsales Strikes With Another Storm-Based Team
Think our hacks are living their sports journalist dreams vicariously through B&T? Confirm it with this reporting.
Commission Factory & AGL Energy Ignite Strategic Partnership To Empower Australian Energy Consumers
Concerned by global warming yet ran the fans non-stop over summer? Add to the guilt with this read.
Allied Nabs Nicola Gold From Pico International Dubai
Seasoned marketer relocates from Dubai to Sydney. Says the shopping's not as good but at least you can get a drink.
Nine’s Push For Gold, Silver & Bronze Ad Opportunities Could Break New Ground In Broadcasting
Nine insists that AI won't dominate its Olympics coverage. And not merely because Bruce McAvaney doesn't understand it.
TV Ratings (16/04/2024): Toxic City Girls Too Much For Farmer Bert
Fans calling out toxic behaviour on Farmer Wants A Wife, seemingly unaware that's the very premise of any dating show.
Kaimera Wins Afterpay ANZ Media Account
Have couriers even started to mention you're overdoing the online shopping? Probably best to avoid this Afterpay news.
Industry Reacts: Stuff Group Swoops In To Save 6pm News After Newshub Closure
As you'll read here, New Zealand's media's in a right state of flux. And nor have they forgotten 1981's underarm.
a2 Milk Launches “Only a2 Will Do’ Brand Platform In First Work From BMF
A2 milk drinkers tend not to bother everyone with their gut health issues & it's a lesson for vegans & the gluten-free.
Can You Recite It In Under 4 Seconds? Maccas Relaunches Iconic Competition With Modern Twist
Do you know what would make a fantastic ad? Drunk people at 3am trying to recite the ”two all-beef patties"
‘Liar, Liar’: Lehrmann Exposed As High Profile Defamation Case Comes To A Close
Having exhausted all avenues in his defamation case, is there only one option left for Bruce - reality television?
MECCA & Fendi Among Premium Advertisers For oOh!media Woollahra OOH Network Launch
If you've not been to the snooty suburb of Woollahra, the locals would like to thank you again for staying well away.
Yahoo Academy Announces Class Of 2024
This academy is strictly for "emerging leaders". Courses don't include 'sleeping at your desk' or 'bunking off early'.
Top 35 Media Leaders Announced For 2024 TikTok Agency Accelerator Program
Despite the ban threats, TikTok keeps marching on. Cementing its reputation as the Julian Assange of the tech.
AiMCO Announces First-Ever Diversity Webinar To Explore Inclusion In Influencer Marketing
Think influencer marketing's a little on the white side? This free webinar's for you. Sadly, it's not given TV ideas.