SYDNEY: MagnaGlobal, a division of IPG's MediaBrands, is predicting ad spend will rise 6.2% this year, despite other forecasters revising up their outlooks.
Increased business confidence and key sectors such as automotive, telecommunications and retail stepping up their activities has helped the broader Australian media market to show marked growth through the first half of the year.
Australia’s top 20 advertisers collectively grew 13% year-over-year in the year ending through May, with the Commonwealth Government the only advertiser to contract their ad expenditure by 15% YOY.
Magna predicts that the performace of the Australian dollar, a sluggish retail sector, a hold on interest rates, and the impact of the Federal Election will determine the mid-term and long-term direction of the media economy.
"Our long-term forecasts are influenced by the secular trends we observe on today’s platforms as well as the near-term deployment of new distribution platforms, specifically the ultra-high speed National Broadband Network (NBN)," said the report. "While broadband services will contribute to sustain growth for online advertising, television should benefit as well."
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