GroupM Study: Aussie Ad Spends To Soar 4.4% To $17.2 Billion In 2019

GroupM Study: Aussie Ad Spends To Soar 4.4% To $17.2 Billion In 2019
SHARE
THIS



GroupM, WPP’s media investment group, today updated its 2018 and 2019 ad investment forecasts.

GroupM slightly downgraded 2018 growth expectations from 4.5 per cent to 4.3 per cent. As well, 2019 growth projections are also whittled from 3.9 per cent to 3.6 per cent, with total new investment anticipated to reach $US19billion instead of the $23 billion earlier predicted.

Stress on the auto category stood out in feedback from GroupM’s worldwide network, as did the absence of any rebound in CPG investment with traditional media. These views and more are discussed in This Year, Next Year, GroupM’s twice yearly look at worldwide media investment trends authored by Futures Director, Adam Smith.

“GroupM’s still strong but slightly fraying 2018 view ties to macro questions: tighter money, China’s slowing growth, and the potential for pricey trade wars,” said Smith. “Real interest rates are edging up globally, but serious potential problems remain limited to a fragile five — Argentina, South Africa, Brazil, Turkey and Venezuela.”

When it came to the Australian market, the report predicted:

  • Adspend in Australia to reach $A17.2 billion in 2019 – growth of 4.4 per cent.
  • For 2018, ad spend is expected to reach $16.5 billion – growth of 5.6 per cent.
  • Australia is the eighth largest market in the world and one of 10 countries expected to provide 83 per cent of all ad spend growth in 2019.
  • Just two channels – regional TV and print – expected to see decline in 2019. 
  • Total TV is set to return to growth for the first time since 2013 is expected to grow 1.2 per cent in with AVOD delivering greatest growth.
  • Total digital is expected to grow eight per cent with the greatest growth coming from display advertising.
  • Growth in outdoor is expected to slow in 2019.
  • There is also a chart showing share of media by channel.
  • The top five categories with the biggest growth in spend are computers (+24 per cent), accommodation, gambling/gaming (+18 per cent), communications (+16 per cent) and appliances (+16 per cent).
  • The four categories with the biggest falls in spend are pharmaceuticals (-17 per cent), real estate (-10 per cent), insurance (-7 per cent) and motor vehicles (-6 per cent).

GroupM forecasts that 10 countries will provide 83 per cent of all 2019 growth.

Screen Shot 2018-12-03 at 8.49.21 am

China remains the largest contributor, but 2019 will be its sixth successive year with single-digit ad growth and mark its lowest growth yet recoded.

Still, its $US90 billion ad market is second only to the USA, and has doubled since 2010. Despite rapid consumerisation, China’s advertising intensity peaked at 0.78 per cent of GDP in 2006 and has trended down to a prospective 0.67 per cent in 2019.

Ranked second, the U.S. is experiencing good macroeconomic indicators like lower unemployment and improved consumer confidence, but increasing energy prices, rising interest rates, and low unemployment have many concerned about the potential for increased inflation on top of a yawning deficit. Marketers continue to scrutinise digital investment with emphasis on verification and value.

Ranked third, India is expected to contribute $US1.35 billion of growth. This is roughly the same as Australia’s, Russia’s and Brazil’s combined growth, even though India’s total ad economy is a mere quarter of the others’ combined heft. India’s 14 per cent ad investment growth is rooted in seven per cent real consumer spending growth.

Japan is fourth. Japanese advertising has tracked ahead of its GDP in the post-Lehman cycle with media spending per capita picking up sharply since 2016. The 2020 Olympics and a surge in biddable media are powering tailwinds, but a 2019 consumption tax rise from eight per cent to 10 per cent and Japan’s belated confrontation with value, viewability and verification in digital supply chain are foreseeable headwinds.

A resilient UK is fifth. Despite fears of Brexit calamity and consumer fatigue, advertising investment remains propelled by massive advertising digitisation (61 per cent of predicted investment in 2019), and GroupM’s UK forecast remains buoyant. This is partly because of the market’s characteristic flexibility. In an emergency, advertisers know they can turn off the tap.

Concerning the new forecast, GroupM’s CEO, Kelly Clark said, “Worldwide advertising investment grows slowly but marketing has never moved faster. Automation proliferates; cycles accelerate; talent grows more mobile. The gap between the cost of failure and the value of success grows wider. For advertisers, this underscores the importance of a world view and trusted partners who can help their brands perform where the growth can be found.”

 

Please login with linkedin to comment

Ad spends GroupM kelly clark

Latest News

Bangkok Thailand - August 31 2017 Facebook App on iPhone with computer laptop background closeup male hand hold social network on smart device concept.
  • Media
  • Opinion

Young Australians Will Abandon Facebook If It Doesn’t Do More To Combat Hate Speech

In this guest post, founders of The Daily Aus Sam Koslowski and Zara Seidler discuss why in order to stay in the game and keep its user, social media giant Facebook needs to do more to combat hate speech… For young Australians, Facebook is on the decline. Unless the platform better responds to its user’s […]

Opinion

by B&T Magazine

B&T Magazine
Baskin-Robbins Australia Awarded For Stranger Things Campaign
  • Media

Baskin-Robbins Australia Awarded For Stranger Things Campaign

A brave move has paid dividends for Baskin-Robbins Australia who recently announced they won the award for Best Digital Initiative at last week’s QSR Media Awards. Baskin-Robbins Australia’s Master Licensee, Palm Oasis Ventures took a risk in launching a digital winter campaign targeting a new millennial and Gen Z demographic when it partnered with Netflix to launch season 3 of the streaming giant’s most popular show, the sci-fi horror series, Stranger Things.

TikTok Turns On Trump (Again)
  • Media

TikTok Turns On Trump (Again)

TikTok has turned on Trump once again. As yet, no one brave enough to speculate it's the work of the Chinese government.

SAN FRANCISCO, CA JULY 1, 2018: Entrance to Adobe San Francisco office location in historic Baker and Hamilton warehouse
  • Media

Convert Digital Awarded Adobe’s Magento Gold Status

Leading eCommerce website development agency, Convert Digital, has achieved the coveted Magento Gold Status from Adobe. This accomplishment has been reached following the agency’s continuing work with the Magento 2 platform - platform that is incredibly robust and offers unrivalled flexibility and scalability.

Influencers Raise $95k For Starlight Children’s Foundation In Do-Good Campaign Via Born Bred Talent
  • Campaigns

Influencers Raise $95k For Starlight Children’s Foundation In Do-Good Campaign Via Born Bred Talent

Influencer marketing agency Born Bred Talent has partnered with the Starlight Children’s Foundation to mobilise their talent roster and support the Stream Raiser campaign, contributing over $95k in donations thanks to virtual fundraising efforts.  With a combined reach of 6.2 million across Instagram, TikTok and Twitch, 9 Australian influencers contributed 76% of the $124k raised […]

UNICEF Set To Launch ClickforCovid Relief Gaming Stream
  • Advertising

UNICEF Set To Launch ClickforCovid Relief Gaming Stream

In 2020, the ‘new wave’ of youth consumers have inspired the world with their activism and fundraising, so eGEN is proud to have partnered with UNICEF, Loserfruit and friends to help gamers fight COVID and help the world’s most vulnerable children. The world’s most famous strawberry will be joined by her Click crew for a […]

Silverbullet Achieves Adobe Audience Manager Specialisation
  • Media

Silverbullet Achieves Adobe Audience Manager Specialisation

Silverbullet Data Services Group (Silverbullet), has become one of only four businesses globally to achieve Adobe Specialisation in EMEA for Adobe Audience Manager. Adobe Specialised Partners are acknowledged as the most skilled technical practitioners throughout the global partner ecosystem. Specialisations are earned after organisations achieve a level of certified expertise in an Adobe solution and […]

Businesswoman hand connecting jigsaw puzzle, Business solutions, success and strategy concept
  • Technology

General Mills Partners With Zyper To Build Virtual Superfan Communities

Food company General Mills has partnered with Zyper, a marketing platform that connects brands with their superfans, to build virtual fan communities for General Mills’ brands. As part of the agreement, General Mills will use Zyper’s software to initially identify the Betty Crocker and Fibre One brands’ top one per cent of fans on social […]

Facebook Pledges $500,000 To Group Admins Across Australia
  • Technology

Facebook Pledges $500,000 To Group Admins Across Australia

Facebook is continuing its Facebook Australia Groups Impact Fund, today announcing $500,000 in funding for the program. The grant was originally designated for bushfire recovery groups, however, has now been extended to local communities across the country who might be facing hardship. Facebook said it is on the lookout for groups that have a positive […]