Media Sector Praying For End-of-year Growth Spurt In Ad Spend: SMI
Australia’s media sector will be hoping newly buoyant product categories combined with further gains from categories reporting strong growth at the end of 2016 will ensure the media agency advertising market delivers growth after a tough 2017 calendar year.
In the first eight months of this calendar year, Australia’s media market is tracking 2.5 per cent (or $113.4 million) below the level achieved in the previous eight-month period, according to Standard Media Index (SMI).
However, most of that decline is due to the lack of federal election-related ad spend, and if the figures were normalised for government ad spend, the total would be back a lesser 0.3 per cent to $4.3 billion.
Even so, for the market to grow above last year’s total requires further investment from some key product categories.
SMI Australia/NZ managing director Jane Schulze said SMI’s product category database shows the back-end of 2016 was notable for particularly large growth in ad spend from the food/alcoholic retail and credit card sectors.
“The food/alcoholic retail category really drove the market’s growth at the back end of 2016 by investing an extra $34.8 million in advertising in the fourth quarter alone,” she said.
“In 2017, we can see that category is already the fastest growing in dollar terms, but the level of overall investment is less, with the sector increasing ad spend by $29.7 million over the whole eight months of this year.
“That means the category has to more than double the level of dollar growth for the whole year thus far to even begin to reach the growth levels seen in the fourth quarter of 2016.”
In the food/alcohol retail category, TV captured the lion’s share of ad spend from these marketers, gaining an extra $14.8 million in ad bookings, while outdoor’s ad spend from this category grew by $7.7 million and digital’s spend grew by $7.4 million.
And it may be that the credit card market is this year replicating a similar investment scenario to that seen in 2016.
So far this year, its ad spend is back 3.2 per cent on the same eight months last year, so it looks to be preparing for a final end-of-year advertising push as it did last year, Schulze noted.
“In the fourth quarter of 2016, the credit card category was the second-fastest growing after food/alcoholic retailers, with its actual ad spend lifting $12.2 million – or by 53.1 per cent – from the year-ago quarter, with the bulk of that extra investment being directed to the digital, which was up $6 million, and television media, up $5.6 million,” she said.
“But for the first eight months of the year, its ad spend is back 11 per cent, so if that pattern recurs in 2017, it will ensure another strong burst of media investment at the end of this year.
“If these trends continue, television, digital and outdoor will be looking at a windfall in the final quarter of 2017 for both categories.”
Schulze said the categories of discount stores/ online retailers, micro/small cars and auto insurance also followed the same pattern, reporting significant declines in ad spend in the first eight months of the year, only to report huge fourth-quarter growth.
“Discount stores/online retailers reported a 38 per cent fall in ad spend in the first eight months of 2016, but it’s clear the marketing budgets were being saved for a strong fourth-quarter push, as in that later period total ad spend soared 25.8 per cent,” she said.
“And on an even grander scale, the micro/small car market had reduced 2016 CYTD ad spend by 5.4 per cent before growing its market budgets by 96 per cent in the fourth quarter.”
SMI: 10 fastest-growing categories by $ (2017 CYTD) | |
Product category | Growth ($) |
Food/alcohol retailers/ shopping malls | $29,788,367 |
SUV | $25,828,316 |
Discount stores/ online retailers | $23,703,229 |
Insurance brand/ sponsorship | $15,876,996 |
Cruise lines/rail/other | $11,321,486 |
Computer software/services | $10,758,256 |
Milk/dairy/produce/baked goods | $10,166,298 |
Restaurants | $9,928,091 |
Auto brand/ sponsorship | $9,860,045 |
Beer imported | $9,511,787 |
SMI: fastest-growing product categories by $ (Q4 2016) | |
Product category | Growth ($) |
Food/alcohol retailers/ shopping malls | $34,952,124 |
Credit cards/ money transfer | $12,248,735 |
Computer software/services | $10,377,453 |
Movies/cinema/theme parks | $9,955,034 |
TV/DVD/PVR/gaming consoles /streaming devices | $9,821,993 |
Latest News
Kantar: AVOD Subscribers Double In 12 Months
Study finds Aussies happy to watch ads on their streaming services. Or, are they just putting the kettle on more often?
Val Morgan Digital Exceeds All Campaign Uplift Benchmarks Via A 12-Month Brand Metrics Study
Val Morgan announces it has exceeded all its campaign benchmarks. Still can't get under an hour for the City To Surf.
Australian Retirement Trust launches monster of a campaign, by M&C Saatchi and Bohemia
Get offered a seat on the bus today? Knees creak like an old pirate's galleon? This retirement ad may be of interest.
Print Audits To Discontinue As Audited Media Association Of Australia Pivots To Support Influencer Marketing
Is it just B&T or are audits in the media industry suddenly becoming murkier than Roxy's husband's tax returns?
News Corp Australia Launches 2024 National Education Advocacy Initiative With Expanded Program
News Corp set to shine a light on the nation's schools in new series, giving illegal bikie gangs a well-earned rest.
Decoding The Consumer Maze: Urban List Report Reveals How Modern Shoppers Spiral From Discovery To Purchase
Latest report unravels a shopper's journey from the joy of discovery through to a nasty letter from a debt collector.
Cosmo Returns To Australia!
Ever get the feeling we've weirdly warped back to 1988 at the moment? Confirm it with the relaunch of Cosmo in print.
People & Culture Consultancy Human Kind Collective Launches To Plug HR Gap For Media Agencies
Does the very mention of HR have you struggling to remember last year's Christmas party? Get the sweats with this news.
‘We Want To Be A Growth Partner, Not Just A Media Buyer Or Someone That Makes Ads’ – Bohemia Boss On Agency’s Ambition
B&T's chatting with Bohemia boss Paul ‘Hutch’ Hutchison. Although we do think 'the dagger' a far superior nickname.
Initiative’s Geoff Clarke: ‘Youth Hits Targets With Enthusiasm, Experience Hits The Targets You Can’t See’
Initiative’s CCO Geoff Clarke on the value of experience in agencies. Not to mention quoting lines from Pulp Fiction.
The Iconic Teams Up With 5 Aussie Athletes For Latest Campaign
Fashion label brings in the athletes for new campaign, many of whom appear to have prepped with re-runs of Zoolander.
Seven West Media Secures New Director Of News & Current Affairs
After a tumultuous few weeks, Seven unveils director of news & current affairs. And B&T never uses tumultuous lightly.
Seven Network Expands NSW Sales Team With Two New Group Business Directors
Seven ramps up its NSW sales team. Both of whom are well versed in pronouncing Manu Feildel's croque-monsieur.
New PR Subscription Changing The Game For Aussie Start Ups
Need better PR? You can now buy it via a monthly subscription. Price does not include a fascinator or Moet piccolos.
Paul Kent At Centre Of Fresh Scandal After Alleged Street Brawl
Do you long for the fights, gouges & testicle grabs of footy's glory years? So too, it appears, does Paul Kent.
DiDi Taps Disney’s Tim Farmer For Head Of Brand Marketing Role
Disney's Tim Farmer shifts over to rideshare company DiDi. Taking with him his Donald Duck coffee mug & mouse ears.
As Sure As Night Becomes Day, The End Of Third-Party Cookies Has Been Delayed
The question remains: what will we see first? The end of cookies, alien invasion or Jesus's second coming?
Fast 10: Scoundrel’s Tim Bullock Explains What Shane Warne & Salt-N-Pepa Have In Common
It's a Fast 10 with Scoundrel's Tim Bullock. Make it sound even faster by sucking on helium while reading it.
Outbrain Snatches Chris Oxley From Foxtel Media
Foxtel's Chris Oxley shifts over to Outbrain, but not before having his press photo taken in the wilds of the Daintree.
oOh!media & POLY Partner With Greening Australia For OOH Awareness Campaign
Like to quell the road rage with super cute pics of fluffy marsupials? This outdoor's just the ticket.
Are Media Cares For The Carers In Its Latest Social Change Campaign
Are Media calls on the government to add super payments to carers' payments. Remains silent on AUKUS, however.
In A Fragmented World, Engagement Is King
Today, B&T TV's talking fragmentation & engagement. But not in a down-on-one-knee sense of the word.
Kyle Sandilands On Advertising: “We Want Return Business. It’s No Good Just Taking Someone’s Money”
Kyle & Jackie O finally arrive on Melbourne radio. As yet, no sign of the monotonous and bitter AFL-NRL debate.
Sydney Comedy Festival: Taking The City & Social Media By Storm
Sydney Comedy Festival 2024 is live and ready to rumble, showing the best of international and homegrown talent at a host of venues around town. As usual, it’s hot on the heels of its big sister, the giant that is the Melbourne International Comedy Festival, picking up some acts as they continue on their own […]
Global Marketers Descend For AANA’s RESET For Growth
The Australian Association of National Advertisers (AANA) has announced the final epic lineup of local and global marketing powerhouses for RESET for Growth 2024. Lead image: Josh Faulks, chief executive officer, AANA Back in 2000, a woman with no business experience opened her first juice bar in Adelaide. The idea was brilliantly simple: make healthy […]
Is Meta’s New AI Chatbot Too Left-Wing?
Meta's chatbot accused of being left-wing after being caught wearing a Che Guevara T-shirt & listening to Billy Bragg.
TV Ratings (23/04/2024): Why Did No One Tell Angela That Farmer Wants A Wife Is Set On A Farm?
As wonderful as this headline is, let's face it, we all know an 'Angela', don't we?
PubMatic Unveils New AI Partnership To Turn Social Posts Into Ads For Any Digital Channel
Here's some nifty tech for turning social posts into ads. Assuming said posts aren't one-star character assassinations.
Intuit Mailchimp Makes A Splash With Its First Australian Brand Campaign
Ever laugh along at a gag you didn't get so as not to appear dumb? Get ready for more feigning with this new work.
GumGum’s Rob Hall: Advertisers Can No Longer “Rely On Binary Descriptions” Of Consumers
If anyone's got their finger on adtech's pulse, it's Rob Hall. He also avoids using the good paper in the office printer
Mastercard Nabs Florencia Aimo From Marriott International
Marriott International's Florencia Aimo jumps from the hotel business to the exploitative credit card one.
Bastion Agency Appoints Cheuk Chiang As New ANZ CEO
Cheuk Chiang takes the reins over at Bastion Agency. But not the rains down in Africa.
Spotlight On Sponsors: Major Sponsorship Wins After A Disappointing Week In Sport
B&T continuing our deep dive into local sport sponsorships & that's despite not a single offer of a free ticket as yet.
Macca’s Marketing Director, Samantha McLeod On Big Mac Chant: “What Was Once Old Is Now Cool Again”
Macca's using the power of nostalgia in latest Big Mac campaign. Well, only for those who've ever eaten one sober.
World Premiere Of Midnight Oil: The Hardest Line To Open Sydney Film Festival 2024
Oil's biopic to open Sydney Film Festival. Here's hoping Molly Meldrum will take his pants down at the premiere.
Entries Are Now Open For The 2024 Brandies, IntelligenceBank’s Annual Brand Marketing Awards
The Brandies are, of course, a prestigious marketing gong and not the mystery tipple favoured by nannas everywhere.