IPG Study: Aussie Ad Spend Per Head Now Second Only To The US

IPG Study: Aussie Ad Spend Per Head Now Second Only To The US
SHARE
THIS



The Australian advertising economy will increase by three per cent this year, according to the latest forecast by IPG Mediabrands’ media intelligence and investment division, MAGNA.

The new forecast is in line with previous MAGNA estimates for this year and sees a similar level of growth to 2017. 

Australia remains one of the most advanced and most intense advertising economies, with ad spend per capita of just under $500 per year, second only to the US. 

Digital remains the primary driver of growth with a projected 9.9 per cent increase in 2018, taking the total ad market to $A16.2 billion this year, rising to $18.8 billion in 2022.

However, it was bad news for print, both magazines and newspapers, with ad spends expected to fall by as much as 26 per cent for the magazine category alone.

Digital media attracts high proportions of total budgets, hitting 57 per cent in 2018. Because of this commanding share, digital growth is modest compared to the global average.

The usual channels – video and social – are still the digital growth drivers, with 23.5per cent and 16.2 per cent growth expected in 2018 respectively. 

Mobile advertising already represents the majority of digital advertising spend in Australia (54 per cent), and that will increase to 72 pr cent by 2022 as mobile continues to outperform desktop spending.

MAGNA Australia managing director Victor Corones, said, “There are clearly some high-performing sectors in terms of forthcoming investment, including travel and accommodation, finance, communications, insurance, food and some very minor growth in retail.

“There are also some sectors remaining under pressure such as automotive, real estate, and entertainment and leisure,” Corones said. 

More broadly, the TV market continues to evolve rapidly. CBS took over Network Ten at the end of 2017, and their full line-up of content is migrating to Network Ten stations. Ten also has a video streaming service in the works aimed at rivalling Netflix. Streaming continues to grow with 10 per cent growth in TV screen use outside of typical live broadcast and catch up television. More than 50 per cent of homes have an SVOD subscription.

The reach of television in Australia has only declined slightly, and not nearly as precipitously as it has in other nearby developed markets like New Zealand and Singapore. However viewers continue to reduce their viewing minutes. 

Other traditional formats continue to struggle in Australia, with newspaper ad-sales expected to decline by 20 per cent this year, and magazines expected to decrease even more (down 26 per cent). Print now represents just 7.5 per cent of total budgets. 

Out of Home in Australia is resilient and will increase by nearly seven per cent this year. Digital OOH is the growth engine within the OOH formats and will increase by 21 per cent this year to reach $477 million. The conversion of traditional OOH sites to digital technology continues to fuel digital OOH’s growth.

Please login with linkedin to comment

Ad spends ipg MAGNA

Latest News

Nine Announces Judging Panel For State Of Originality
  • Marketing

Nine Announces Judging Panel For State Of Originality

Nine has named the judging panel for its much-anticipated State of Originality, Australia’s richest advertising award, aimed at making State of Origin the equivalent of Australia’s Super Bowl in advertising terms. Announced at Nine’s Upfront last September, the winning campaign will take home much more than a trophy – there’s $1 million in advertising inventory […]

British Supermarket Begins Court Case Over Copycat Caterpillar Cake
  • Marketing
  • Media

British Supermarket Begins Court Case Over Copycat Caterpillar Cake

British supermarket Marks & Spencer has taken an intellectual property claim against fellow supermarket ALDI over the latter’s Cuthbert The Caterpillar Cake, which they allege is too similar to their own iconic Colin The Caterpillar Cake. Colin the Caterpillar (pictured above) has been a staple of birthday parties across the UK since 1990, when the […]

by B&T Magazine

B&T Magazine
DDB Sydney Unveils Australian Red Cross’ First Brand Campaign In Almost A Decade
  • Campaigns

DDB Sydney Unveils Australian Red Cross’ First Brand Campaign In Almost A Decade

We all felt helpless in the face of 2020’s constant barrage of disasters and catastrophes. And 2021 hasn’t let up either. Last year, Australian Red Cross experienced its biggest demand since World War II, so it has responded with a new brand campaign bringing attention to this overwhelming feeling and highlighting its 106-year track record […]

“Food Is A Way Of Answering Emotional Questions In Ourselves”: The Masterchef Judges On Season 13
  • Media

“Food Is A Way Of Answering Emotional Questions In Ourselves”: The Masterchef Judges On Season 13

As Master Chef prepares to launch back onto screens on Monday 19th April, B&T had the opportunity to speak to the show’s hosts, food critic Melissa Leong and chefs Jock Zonfrillo and Andy Allan, who won the show’s fourth season. The three judges first appeared on last year’s Masterchef: Back To Win, which saw returning contestants […]

by B&T Magazine

B&T Magazine
Which 50? Has The Datafication Of Advertising Finally Killed Off Adland’s Favourite Slogan?
  • Partner Content
  • Technology

Which 50? Has The Datafication Of Advertising Finally Killed Off Adland’s Favourite Slogan?

Undoubtedly one of the most overused slogans in marketing’s and advertising’s history is John Wanamaker’s iconic “half the money I spend on advertising is wasted; the trouble is I don’t know which half”. And it’s a credit to the quip’s longevity that last year the line celebrated a real milestone – its 100th birthday. But […]

Partner Content

by B&T Magazine

B&T Magazine
Leadership, Humanity, Technology – The Sweet Spot
  • Media
  • Technology

Leadership, Humanity, Technology – The Sweet Spot

The SingularityU Australia Executive Program will take place this may, celebrating leadership at the intersection of the values of humanity and the value of technology. The Elon Musks, Apples and Xeros of the world are taking risks for humanity and creating new  technologies that streamline and beautify business operations. They simplify life by providing basic […]

by B&T Magazine

B&T Magazine
OMD Alumnus Launches Specialist Media Agency For The Franchise Sector; TFM Digital
  • Marketing

OMD Alumnus Launches Specialist Media Agency For The Franchise Sector; TFM Digital

Brisbane media professional and former OMD Australia Account Director Taylor Fielding (pictured) has officially launched TFM Digital. TFM Digital is a specialist media agency based in Newstead which primarily provides media buying services, and strategy development, to businesses chiefly, but not exclusively, within the franchise sector. Prior to the launch of TFM Digital, Fielding spent […]

FutureFeed Appoints Five By Five For Global Launch
  • Media

FutureFeed Appoints Five By Five For Global Launch

Launch marketing specialists Five by Five Global have been appointed by FutureFeed to develop their brand, international certification trademark and go to market strategy. The innovative livestock feed ingredient developed by CSIRO, Meat and Livestock Australian and James Cook University uses a specific genus of seaweed, Asparagopsis, which significantly reduces methane emissions in ruminant livestock. […]

SKMG’s Andrew Knowles Snares B&T’s 30 Under 30 For PR
  • Marketing

SKMG’s Andrew Knowles Snares B&T’s 30 Under 30 For PR

Andrew Knowles, partner and co-founder of the corporate communications consultancy Shoebridge Knowles Media Group (SKMG), has won the PR category in the 2021 B&T 30 Under 30 Awards. Knowles received the award at a ceremony in Sydney last night, claiming victory in a highly competitive field that included leading executives from some of Australia’s biggest […]