ANALYSIS - A heartening lift in ad spend as brands rush to secure airtime

Chris Pash
By Chris Pash | 3 December 2020
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Media agencies are seeing a strong lift in ad spend as brands rush for airtime on TV, and availability in outdoor and radio.

SMI (Standard Media Index) numbers for October show the market down 4.8%, a long way from the depths of the pandemic in May with a record 40.4% drop in ad spend.

And forward bookings confirm November and December ad demand is well above where it was at the same time last year. 

The October market was boosted by the move of the AFL and NRL finals and Grand Finals into the month which resulted in a 12.7% increase in television bookings. Metropolitan TV ad spend was up 15.7% year-on-year. 

Dominic Pearman at Pearman Media says it’s good news for the industry with -4.8% as the lowest negative number for a year.

“However, moving the AFL and NRL finals into October definitely helped the month and ensured the alcoholic beverages category was up,” he says.

“There is even hope that November could be a positive month - the first in two years!"

Pia Coyle, national head of investment, Ikon Communications, says it’s heartening to see the ad market lift.

“It’s great to see SMI reflecting the crazy market dynamics that we have all lived through over the last few months,” she says.

“While there has been frustration and lots of blood, sweat and tears to secure our clients airtime on TV, and avails in outdoor and radio, it’s heartening to see the market bouncing back post the COVID lows.

“No surprises that November forwards are also shaping up well. 2020 is all but done now, with little to no chance of getting anything significant away on TV.

“And we are seeing this demand push into January and February too.

“The message to clients is get in quick, don’t be caught needing to get in market last minute, as the choice of avails is just not there.”

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