Show me the ad money
Australians have a reputation for being hard fighters, and a look at our advertising spend is evident that despite the country having faced trying times this year, we are still investing resources to keep our markets alive. In fact, a study by ZenithOptimedia, a global media services agency found that Australia was ranked 8th in the world’s top ten ad markets, having spent USD$11,414 million last year, and forecasted to grow to USD$13,134 per annum by 2013.
Globally, advertising expenditure is forecasted to reach US$471 billion this year, which matches the peak level of expenditure reached in 2008 before the global financial crisis occurred.
Predictions for adspend in the Asia Pacific region have been increased, now expected to grow 5.9% this year, which is up from the 4.6% forecasted in April. ZenithOptimedia explains that in particular, Australia is forecasted to show a four to five percent growth this year, with online and outdoor advertising driving this increase. Despite recent market slowdown that resulted from the Queensland floods, the effects of the Japanese tsunami and a drop in consumer confidence, the agency believes that adspend will recover, especially with stronger forward bookings in TV and press over the next few months.
Globally, television is still predicted to contribute most to new advertising dollars, and with internet and display advertising (including online video and social media) experiencing tremendous growth. Marketers who have predicted the decline of TV advertising are proven wrong, with time spent watching television continuing to climb globally. TV advertising is also predicted to attract 41.4% of adspend in 2013, up from 37.3% in 2005.
Paid search remains the highest avenue of internet advertising sales, and newspapers are expect to continue on its decline since 2007, and is predicted to be replaced by the Internet as the world’s second-largest medium by 2013.