Ad spend up, consumer confidence not
Radio advertising has revealed signs of recovery after revenue in the metro area rose 4.15% to $59 million in November, compared to last year.
According to figures from the Commercial Economic Advisory Service of Australia, for the six months to June the industry showed advertising spending declined 8.5%.
Only pay-TV and online continued to show nominal growth in 2009.
The results come as Publicis Groupe-owned ZenithOptimedia raised its own outlook for 2010, predicting that global ad spend would rise by 0.9% to an estimated US$448 billion – up from its previous forecast of 0.5% growth.
Despite the increasing ad sales figures, Australian consumer confidence fell in December after central bank Governor Glenn Stevens increased borrowing costs for an unprecedented third straight month.
According to a Westpac Bank and Melbourne Institute survey of 1,200 consumers conducted between 30 November and 6 December, the sentiment index dropped 3.8% to 113.8 points.
Falling consumer confidence may give Stevens the opportunity to keep the benchmark lending rate unchanged at 3.75% when his board next meets in February, after quarter percentage point increases in October, November and this month.
Bloomberg analysts predict that Australia’s unemployment rate rose in November to 5.9% from 5.8%.
Business confidence rose in November to the highest level in seven years, according to a National Australia Bank.