Media Agency Bosses Expect A Stronger Second Half for Australia Ad Market

  • May 27, 2019 AEST
  • Team Kalkine
Media Agency Bosses Expect A Stronger Second Half for Australia Ad Market

The Australian advertising market has been hit by several economic disturbances in 2019; much of the distractions has been resolved after the federal elections results.

The recently published IAB Australia Online Advertising Expenditure Report (OAER) by PwC indicated that online advertising spending in Australia rose in the first quarter of 2019 by 4.9 per cent to $2.2 billion against same three months last year. The video, mobile and classified advertising have also improved year-on-year by 15 per cent, 26 per cent and 7 per cent, respectively. However, the online advertising expenditure declined 4.3 per cent in Q1 in comparison to the Q4 last year.

As per Enhanced Media Metrics Australia, the readership for news media - newspapers and news website increased to 17.6 million in March from 17.4 million in January, growing about 200,000 in 2019.

The table below shows the data reported by Enhanced Media Metrics Australia on the monthly readership of different news media in March 2019:

Many news organisations, TV shows and sporting codes witnessed a growth in their audiences in 2019 despite the toughest advertising market since the global financial crisis.

After the uncertainty around the aftermath of the banking royal commission, a tough housing sector, the federal elections and changes to automotive financing weighed on marketing budgets to start the year; media agency bosses now expect a stronger second half of the advertising market.

According to Mr Henry Tajer, Chief Executive of Dentsu Aegis Network Australia and New Zealand, a number of elections and the federal election have impacted advertising market from 2018 in terms of broader public concern and created a bit of conservatism in the corporate sector. However, he expects the ad market to have a robust 2H 2019 with stronger growth (Y-o-Y), although below inflation.

Another media boss, Mr Peter Horgan, Chief Executive of Omnicom Media Group Australia and New Zealand, believes that the decided election results will allow marketers to be more confident on their investment. According to him, the broadcast media has gained traction among the marketers with Facebook having undergone several challenges this year.

The Australian economy has gone through a lot of ups and downs in 2019 like disappointing inflation figures, falling property prices and rising unemployment rate. With regard to these challenges, the Reserve Bank of Australia made some modifications such as downgrading its consumption and dwelling investment forecast and moving towards an interest rate cut in June. Besides this, the global economy fluctuated due to the ongoing trade tensions between the two global superpowers – the United States and China.

However, the miraculous win of the Coalition Government in federal elections emerged as a positive indicator for the Australian economy and melted the wall of worry faced by Australian investors. Additionally, the proposal by the Australian Prudential Regulation Authority to ease home loan rules was a cherry on the cake for the new home loan buyers.

The S&P/ASX 200 index settled the day’s trading at 6451.89 points (As at 2:11 PM on 27th May 2019), down by 0.1 per cent relative to the last close.


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