Agency bosses predict 3% market growth in 2013

By By David Blight | 25 January 2013
 

Media agency bosses from the five major holding groups have forecast “moderate” growth for 2013 with most citing figures between 2% and 3%, while one has said this will be the industry’s “biggest year ever”.

While last year saw media agency bookings decline by 1%, according to Standard Media Index, agency bosses including Harold Mitchell, John Steedman, Henry Tajer, Peter Horgan and John Sintras have tipped a more positive outlook for the overall market in the coming 12 months.

Mediabrands executive chairman Henry Tajer forecast increases in the total market between 2.5% and 3%. “This will represent the biggest market that the Australian media sector has ever seen in terms of total size – around $12.6 billion,” he said.

“Media companies and marketers are not going into 2013 with a conservative view. They all have intentions to grow, and a willingness to invest, and they are confident there will be growth. Last year was lumpy and gloomy, but this year will be different.”

Aegis Media Pacific executive chairman Harold Mitchell would not provide an exact growth figure, but was optimistic in his outlook. “It will be a year of some growth in the Australian economy,” he said. “The election in particular will add to overall volume and give a clearer indication of the next three years.”

However, despite predictions of forward movement, many agency bosses have been relatively downbeat. John Sintras, chairman of Publicis-owned Starcom MediaVest, said the market will see “low single-digit growth, a couple of percent, tops”.

“I can’t see a catalyst for any major positive change,” Sintras said.

Peter Horgan, chief executive of Omnicom-owned OMD, forecast 2.6% growth, but said: “It will only be slightly better than last year, and that’s because of very soft comparisons. This modest growth won’t be keeping up with the economy.”

GroupM chief executive and chairman John Steedman predicted between 2% and 3% “at best”, while describing the short-term market as “flat”. However, he did say things might pick up in quarter two, suggesting TV would stabilise and the sharp declines in magazines and newspapers would lessen.

Meanwhile, Mediabrands’ Tajer lashed out at analysts calling 2% to 3% growth “flat”. “I just don’t understand the motivation of those who want to talk the market down,” he said. “Two and a half percent growth is still growth the last time I checked. A positive figure is a positive result. This will be our largest media market ever.”

This article first appeared in the 25 January 2013 edition of AdNews, in print and on iPad. Click here to subscribe for more news, features and opinion.

Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.

Have something to say? Send us your comments using the form below or contact the writer at davidblight@yaffa.com.au

Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au

Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.

comments powered by Disqus