News Media Ad Revenue Falls As Agencies Continue To Pull Back Spending

News Media Ad Revenue Falls As Agencies Continue To Pull Back Spending
SHARE
THIS



Media agencies continue to reduce their spending on news media brands at a rate far higher than direct advertisers, according to the latest News Media Index.

The index found that Australia’s news media sector reported $2.28 billion in advertising revenue for the 2016 calendar year – down 7.5 per cent from 2015.

Unsurprisingly, print saw the biggest decline – down 11.3 per cent to $1.70 billion – while ad revenue for newspaper-inserted magazines dropped 9.2 per cent.

Digital was the only sector to witness an increase in ad revenue last year – up 9.9 per cent.

The index, which is independently verified by Smart Media Index (SMI), also found that the buying decisions of media agencies continues to be out of sync with those of direct advertisers.

Digital revenue from direct advertisers grew by 21 per cent in 2016, while agency revenue fell by 0.5 per cent. The index noted that this discrepancy also applied to print revenue.

SMI’s managing director for Australia and New Zealand, Jane Schulze, said total News Media Index bookings from direct advertisers grew to 51.7 per cent of all news media advertising expenditure in 2016 – up from 49.9 per cent in 2015 – as agencies continued to reduce their spend on news media brands at a “far higher” rate than direct advertisers.

“As an example, direct advertisers grew their ad spend on Melbourne’s metropolitan titles by 1.2 per cent in CY2016, while agency spend on the same titles fell by 15.5 per cent,” she said.

“It raises a valid question as to how the same titles could obviously deliver great value for direct advertisers while the agency market looks elsewhere.”

NewsMediaWorks CEO Mark Hollands said the spending trend of media agencies was concerning and unwarranted.

“News publishers have maintained incredibly strong audience engagement, delivering quality environments that advertisers desire,” he said.

“Marketers who deal directly with publishers understand this and appreciate the value.

“Agency choices on behalf of their clients are out of sync with the many advertisers who choose to commercially engage directly with publishers.”

Hollands predicted that readers and advertisers would continue to rely on news media brands for trusted journalism and analysis.

“The unfolding political events in the United States and Europe will ensure that publishers continue to deliver engaged, articulate and valuable audiences through 2017 and beyond,” he said.

“No media sector is better at delivering news and explaining the context of events from around the world.”

Please login with linkedin to comment

News Media Index NewsMediaWorks taxi council queensland

Latest News

New Talent Agency, Liquorice Plants Roots In NZ
  • Marketing
  • Media

New Talent Agency, Liquorice Plants Roots In NZ

The brainchild of co-founders Gina Williams-Folau (main photo) and Greer Bland, the talent agency Liquorice was born out of a desire to make things easier for brand managers. Liquorice offers social talent for brands wanting to hit the sweet spot with Kiwi audiences. Launching with a roster of big names on board including Millie Elder-Holmes, Athena […]

Anglicare WA Makes Winter Chill Contagious In Campaign Via Wunderman Thompson
  • Advertising
  • Campaigns

Anglicare WA Makes Winter Chill Contagious In Campaign Via Wunderman Thompson

9000 Western Australians experiencing homelessness are about to face cold winter nights. To call for donations to the 2021 Winter Appeal, Anglicare WA has released a chilling video with renowned actor Liam Graham, best known for his starring roles in Greenfield and The Heights, experiencing mild hypothermia after spending one hour in a commercial freezer. […]

Blackmagic Design Helps Create Latest Ad For Chris Hemsworth’s Centr Fitness App
  • Advertising

Blackmagic Design Helps Create Latest Ad For Chris Hemsworth’s Centr Fitness App

Blackmagic Design has shared how its products were used to shoot the latest commercial campaign for Chris Hemsworth’s fitness training app, Centr. The new campaign, which promotes the progressive 10 week workout plan ‘Power’ replicates the same protocols used to prepare the actor for his latest appearance in the upcoming Marvel franchise film, Thor: Love […]

Webprofits To Aggressively Drive Airtasker’s UK Growth Plan
  • Marketing

Webprofits To Aggressively Drive Airtasker’s UK Growth Plan

Airtasker has chosen leading independent digital growth consultancy, Webprofits as a strategic partner to help them expand to new markets. Following a successful IPO in early 2021, Airtasker set its sights on the next strategic objective — expansion and growth in the UK market. After careful review, they partnered with the growth marketing specialists at […]

Cresta’s Awards See Upturn As Ad Spend Starts To Return
  • Advertising

Cresta’s Awards See Upturn As Ad Spend Starts To Return

Cresta Awards has announced that despite having a few more weeks before entries close, this year’s Cresta Awards has surpassed its entries for the whole 2019 Season. Cresta sees this as evidence, not just of evolution in its own awards but of a wider measure of industry confidence and resilience in many markets. The awards […]

Seattle, USA - Aug 19, 2019: The new Google building in the south lake union area at twilight.
  • Technology

Reports: Google Draws The Ire Of EU (Again)

B&T's editor takes great pleasure in an opportunity to use 'ire' in a headline, despite having no idea what it means.

by B&T Magazine

B&T Magazine