Digital to make up 40% of Aussie ad spend

By AdNews | 26 March 2015
Luke Littlefield

Investment in digital is continuing to grow, with Dentsu Aegis predicting Australia's digital ad spend will reach 38.9% share of total media spending this year.

The figures come from the Denstu Aegis Network Advertising Spend Forecast, and notes that digital is the number one media category in the Australian market, expected to increase by 13.4% this year and 11.2% in 2016.

Globally, the “unwavering positive trajectory” of digital ad spend is expected to continue to reach more than 25% of ad spend in 2016, fuelled by an upsurge in mobile ad spend in 2015.

Dentsu Aegis Network ANZ CEO Luke Littlefield said the impact of digital is becoming more apparent.

“The next generation of business will be completely within the digital economy, posing disruption to established businesses and reflecting the fact that from a communications perspective the battleground between traditional and peer-to-peer businesses will be in the convergent media space,” Littlefield said.

“As a business, we have a strong focus on providing clients innovative solutions across all platforms, however we will see mobile, video content and wearable technology further and further embedded into consumers' lives.”

Total Australian ad spend is predicted to increase marginally by 1% over 2015 and by 1.5% in 2016, with the report noting the growth is more optimistic than previously predicted.

It said media agency bookings in the last four months of 2014 were strong and with interest rates at a record low, consumers are more willing to spend.

“It is pleasing to see that 2014 was the second consecutive year of growth in ad spend in Australia, consolidating the growth we saw in 2013,” Littlefield said.

“It reflects the cautious but positive consumer and business sentiment in our market.”

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