SMI Data: Ad Spends Plummet Over 40% For May (As Outlook Brightens)

SMI Data: Ad Spends Plummet Over 40% For May (As Outlook Brightens)
SHARE
THIS



Australia’s media industry has again felt the full consequences of the COVID-19 pandemic’s impact on the economy in May, with the economic slowdown being reflected in another record decline in national marketer ad spend (ex abnormals) of 40.4% to $345.6 million according to the latest SMI data.

That represents a year-on-year decline in corporate advertising expenditure of $234 million and puts the Australian market on track to see more than a staggering $700 million wiped from the advertising market in just the April to June period.

 

All major media are reporting very large double-digit declines in May following the trend first set in April when ad spend fell 35.3 per cent. And if we add back the Political Party/Union/Industry Assoc category ad spend that abnormally boosted the May 2019 market, today’s decline is even larger at 43.8 per cent.

SMI AU/NZ managing director Jane Ractliffe said the level of decline is simply far worse than anything ever experienced, with many significant product categories pulling the vast majority of their advertising budgets in May.

“In May last year the Travel category was the market’s fifth largest but this month its plummeted to 30th position after a shocking 92 per cent fall in ad spend as the industry shut down. Similarly, the value of bookings from the Live Entertainment category slumped 95 per cent and even the large Automotive Brand category reported a massive 62 per cent fall in year-on-year bookings,” she said.

“The only bright news among the larger categories came from the Domestic Bank category which continued to boost its media investment – this month by 6.2 per cent – as it continued to communicate its relief packages and assistance to its customers.’’

And Ractliffe said there was some other good news, with the market returning to a more normal position in the months of July and August, with SMI’s forward bookings data clearly showing far stronger demand for those months.

“When we look at the level of confirmed ad spend for July compared to what it was at this time last year, we can see a difference of only nine percentage points and for August the difference is even smaller at six percentage points. Given the difference in demand in May was more than 40 percentage points this shows the market is clearly regaining confidence,’’ Ractliffe said.

She said it was also important to note that while these declines are devastating to the Australian media, the same horrendous pattern is being replicated in other world markets.

“SMI has just published our first Canadian ad spend data, and that showed a year-on-year decline in ad spend of 50.1 per cent in May while in the UK the fall was 41.6 per cent, 38 per cent in NZ and 32 per cent in the US. The sad reality is that all sophisticated media markets are feeling the full impact of the COVID pandemic and it’s devastating everywhere.’”

The continued decline in Australian ad spend now means the market’s decline for the January – May period has reached 21.3 per cent while for the financial year-to-date the decline is 12.6 per cent.

Please login with linkedin to comment

SMI Data

Latest News

Semi Permanent Sydney Announces New Dates For 2021 Festival
  • Marketing

Semi Permanent Sydney Announces New Dates For 2021 Festival

In light of the prolonged lockdown occurring throughout New South Wales, Semi Permanent Sydney has announced new dates for this year’s festival. It will now take place between 17-19 November 2021 at Carriageworks. “Our mission, always, is to craft the best and most valuable experience for both our speakers and audience, and to ensure the […]

Acast Adds New Brand Suitability Controls For Advertisers Via Comscore
  • Advertising
  • Media

Acast Adds New Brand Suitability Controls For Advertisers Via Comscore

Acast, the independent power source of podcasting has teamed up with Comscore to provide brand suitability controls for brands advertising through the Acast Marketplace. This new innovation is part of a global partnership with Comscore, and will be available to all advertisers working with Acast Australia and New Zealand. The brand suitability solutions offered by […]

HootSuit Appoints Maggie Lower As Chief Marketing Officer
  • Marketing
  • Media

HootSuit Appoints Maggie Lower As Chief Marketing Officer

Social media management solutions company Hootsuit, has announced that Maggie Lower has joined the company as chief marketing officer. Lower will own the brand’s overall global strategy, demand generation, communications, and events. Prior to joining Hootsuite, Lower was the global chief marketing officer at Cision, the first chief marketing officer at TrueBlue, and has held […]

Trade Indy Opens Sydney Office With Appointment Of NSW Commercial Director Ben Mulcahy
  • Marketing

Trade Indy Opens Sydney Office With Appointment Of NSW Commercial Director Ben Mulcahy

Headquartered in Melbourne, Trade Indy is expanding off the back of strong client retention and consistent growth through existing and new business. Founded in Melbourne in 2014, the team have since expanded the business through team members in Singapore, Indonesia, Tasmania and Queensland, and are pleased to announce the full-time employment of NSW commercial director […]

Outbrain Goes Public, Making Nasdaq Debut
  • Marketing

Outbrain Goes Public, Making Nasdaq Debut

Outbrain Inc. has announced the pricing of its initial public offering of 8,000,000 shares of common stock at a price to the public of US$20.00 per share. The gross proceeds to Outbrain from the offering, before deducting the underwriting discounts and commissions and offering expenses, are expected to be approximately $160 million. The shares began […]

HubSpot To Support The GO Foundation As Part Of World Certification Week
  • Technology

HubSpot To Support The GO Foundation As Part Of World Certification Week

HubSpot, the customer relationship management (CRM) platform for scaling companies, has announced that as part of its World Certification Week, it is supporting the GO Foundation with its mission to empower young Aboriginal and Torres Strait Islander people through education. As part of the support, HubSpot will donate $5 for every HubSpot Academy certification awarded […]

IntelligenceBank Secures $50M Investment From Five Elms Capital
  • Technology

IntelligenceBank Secures $50M Investment From Five Elms Capital

IntelligenceBank has today announced a strategic growth investment from Five Elms Capital. The $US37 million ($50 million) investment comes as brands and enterprises have realised that outdated technologies, disjointed data sources, and manual processes make it challenging to efficiently manage essential marketing workflows and ensure compliance across the organization. IntelligenceBank digitally transforms manual processes and […]

SCA Announces Ten New Dab Music Stations Via LiSTNR
  • Media

SCA Announces Ten New Dab Music Stations Via LiSTNR

Southern Cross Austero (SCA) announced today 10 all-new DAB+ music stations on LiSTNr. The introduction of the 10 new Dab stations takes the number of music stations to 25 and reinforces its commitment to growing exclusive music programs and content. The 10 new stations have been created to cater to a variety of moods and […]

SBS Launches Live Interpreting Of Daily NSW COVID-19 Conferences In Vietnamese And Arabic
  • Media

SBS Launches Live Interpreting Of Daily NSW COVID-19 Conferences In Vietnamese And Arabic

SBS has launched live interpreting of the daily NSW Government COVID-19 press conference in languages other than English, to provide communities with access to the latest information and critical health messages. The national-first initiative provides real-time interpreting of the press conferences in Arabic and Vietnamese, streamed live every day on the SBS Arabic24 and SBS Vietnamese Facebook pages, SBS […]

Linktree Chooses Snowflake To Support Intelligence And Analytics Activities
  • Technology

Linktree Chooses Snowflake To Support Intelligence And Analytics Activities

Snowflake, the Data Cloud company, today announced it has been chosen by market-leading linking platform, Linktree, to support the company’s business intelligence and analytics activities. Linktree enables creators, brands, artists, publishers, agencies, and businesses of all sizes to curate an online ecosystem and monetise their passion, instantly guiding their audience to the destinations they care […]