Media agencies reported a 44.3% jump to a record $754 million in ad spend for June, hitting pre-COVID levels of 2019.
The month, as measured by SMI (Standard Media Index), was expected to be big after the deep falls of the middle of 2020 during the economic darkness of the pandemic.
However, the level of ad spend in June 2021 hasn't been as high since the collection of SMI ad payment data began in 2009.
All major media benefited from the market surge and the digital media reported a record June result.
"It’s simply an incredible accomplishment to have achieved such a level of ad spend when the market is still in recovery mode," says SMI AU/NZ managing director Jane Ractliffe.
"Who would have even thought this could be possible a year ago?
"And what’s even better is that strong market figures like these provides certainty that this advertising recovery is sustainable despite the uncertainties we now are learning to live with in this new COVID world.’’
The June result was the third consecutive month in which ad spend recorded year-on-year growth of more than 40%.
This pushed June quarter bookings up 53% compared to the same three months last year.
Total bookings for the quarter are just $9 million (or -0.4%) below the the equivalent quarter in 2019.
For the first six months of the year Australian national marketer ad spend has grown 25% above the same time last year, with TV bookings also up 25% (and just $44 million shy of the 2019 total), outdoor spend up 22.2% and ardio demand lifted 20.2%.
This stronger six month period also pulled the financial year results into positive territory with the total up 7.1% (representing just over $500 million).
Ractliffe says SMI’s Forward Pacings data also underscored the stronger level of continuing demand with the value of contracted August ad spend now 83% of last year’s total, up from 44% in the interim June report.
The value of September bookings has lifted to 38% of last year’s total from 29% two weeks ago.
The following chart shows how close current advertising demand is when compared to pre-COVID, with ad demand for the last three quarters virtually in line with that seen two years ago.
Ad demand for July is also already strongly in positive territory, although that’s also being driven in large part by the Tokyo Olympics broadcast.
"It’s obviously been an incredibly challenging financial year for all media, with SMI showing the total market back by 6.4% in the first half of the year (July to December) but then the market switched into recovery mode as demand soared and the value of bookings jumped 25%,’’ she says.
"The SMI data highlights the size of the swing back to growth with ad spend falling more than $250 million in the first half of the financial year, but then jumping by more than $750 million in the following six months.’’
June numbers plus financial year:
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