Australia’s media agency market has delivered yet another month of double-digit revenue growth in September as it continues its strong rebound from the COVID lows of 2020 with the value of national marketer ad spend jumping 15.5 per cent year-on-year.
But it seems the Melbourne and Sydney lockdowns finally began to bite in September, with strong TV and digital gains not replicated within the outdoor media as reduced audiences prompted ad spend to nationally-booked outdoor campaigns to fall, in turn limiting outdoor’s growth this month to 3.8 per cent.
At the same time the television media was buoyed by the return of the AFL and NRL finals series to September after being moved to October last year, with total bookings up 17.1 per cent, while strong growth in Search and Social Media ad spend pushed digital’s total bookings up 20.1 per cent.
SMI AU/NZ managing director Jane Ractliffe said the result of the buoyant TV and Digital media was that 94 per cent of all returning ad spend this month was placed on either the Television or Digital media.
“The Australian market has delivered another month of much improved advertising demand, but the month has been unusual given the very strong focus on the TV and Digital media,’’ she said.
“The radio, magazines and cinema media also all delivered double-digit growth in agency ad spend in September but the sheer size of the growth evident in TV and Digital – those two media accounted for 81.6 per cent of all ad spend – necessarily reduced the share this month of all other media.’’
As a result, total market ad spend this month is 9.3 per cent below that seen in September 2019, but if bookings to the lockdown-affected media of Outdoor and Cinema are removed then total ad spend is 0.6 per cent above that achieved two years ago.
“After more than three months of lockdowns in our two most populous cities, it’s inevitable they would eventually again affect the Outdoor media and that’s certainly the case this month as the September month is the first in five in which Outdoor has not delivered double-digit levels of ad growth,’’ Ractliffe said.
“But now that the lockdowns are over and life in Melbourne and Sydney is finally returning to normal we fully expect the Outdoor and Cinema media to quickly return to very strong levels of double-digit growth and create renewed competition for both the Television and Digital media when targeting large audiences.’’
Ractliffe said SMI’s data also continues to highlight the incredible recovery in the local ad market, with September quarter bookings up 29.4 per cent above the same quarter last year, and 4.6 per cent above the same quarter in September 2019 having moved back through the $2 billion mark for the first time since the September 2018 quarter.
“In this quarter we’re reporting higher ad spend to all major media as the ad dollars pour back across the media landscape but again the greatest growth has been seen in the TV and Digital media, with their agency bookings nine per cent and 29 per cent above that achieved in the September 2019 quarter,’’ she said.
And across the calendar year-to-date period total ad spend has grown 27 per cent to $5.9 billion which is 0.4 per cent above the total recorded in the same period in the pre-COVID year of 2019.