Australian ad spend figures paint a bleak picture for August – but are distorted due to comparison with election spend in August 2013.
The total market was down $33 million according to media agency billings data collated by Standard Media Index. The decline in government spend accounted for around $26m of that fall, suggesting a broadly flat overall market.
Across media channels, TV was down, as were newspapers and radio. Cinema advertising fell sharply. However, consumer magazine enjoyed rare growth.
Consumer print magazines were up 5.4% for the month. Pac Mags boss Peter Zavecz said that level of growth was also reflected within its print business. Social and digital channels were also adding to ability to engage audiences and advertisers, he claimed. Forwards looked “okay” for the next few months and Zavecz said that he was expecting some growth to show in next month's SMI figures, “although not huge growth... but we are stabilising [after ongoing declines across the industry].”
Tony Kendall said that Bauer's print revenues were up 11% for August, attributing growth to its efforts in engaging buyers and its insights team.
“We're getting traction with some retailers and more broadly there were some large FMCG campaigns that kicked in over the period.”
“It's a good result,” said Kendall. “It shows magazines are getting reconsidered by agencies.” However, he acknowledged one swallow did not make a summer.
“It's a strong August, and we expect to see some growth, but not at the 11% level.”
SMI data has metropolitan TV down -7% to $16.3m for August year on year, regional TV down -11.8% and pay TV down -9.6%. The total TV market was down -7.5% to $303.9m for the month versus $328.5m in August 2013. That compares to $294m in August 2012 and $333.9m in August 2011.
Overall digital growth was checked to 5.8% against August 2013 to $114m although that figure may change, as digital data usually lags. Social media and exchanges were the biggest growth categories, both up more than 50% year on year. Ad networks and affiliate networks continue to decline.
Newspapers were back -17% overall. Spend across all newspaper categories stood at $64.6 million, approximately half that of August 2011 ($112.9m).
Outdoor was up 3.7% to $51m, radio was down -5.8% with regional radio dragging. Total radio spend was $43.9m, marginally up on 2012.
Cinema fell -44.8% to $2.46m.
Seven of the top ten industry categories were up, but the overall market was dragged down by government (-56% to $20m), automotive (-6%). Meanwhile the big retailers continue to squeeze suppliers with FMCG spend down 11%.
Taking the government anomoly ou of the picture suggests a market down aroun -1% overall.
“Underlying conditions are solid”, said OMD boss Peter Horgan. He said that within channels, “we continue to see a migration of funds to always on and performance support.”
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.
Need a job? Visit adnewsjobs.com.au.
Have something to say? Send us your comments using the form below or contact the writer at brendancoyne@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.