Miners boost ad spend 23%

SYDNEY: Agency advertising bookings grew 23.4% in June, compared to the same time last year, the latest report

from Goldman Sachs JBWere has revealed. Using data from Standard Media Index (SMI), which analyses bookings from

media agencies, the report shows solid advertising growth for the two months the blitz from the Federal Government

and mining lobby groups in response to the Resources Super Profits Tax was in market.

"We have not made any changes to our ad market forecasts," said GSJBWere analyst Christian Guerra, "however,given

we now have agency ad market data for the six months to June, our ad market forecasts are under review ahead of

the August reporting season. It appears metro FTA TV, out-of-home and online display are all performing ahead of

our expectations.

"Positive growth was experienced in all media types," said Guerra. "Of note, cinema agency advertising doubled on

previous corresponding period, while advertising on pay TV grew faster than that on metro FTA TV. Pay TV also did

not experience the negative growth in Jun 09 that the commercial FTA networks experienced (+30.6% in Jun 10 cf.

+3.4% in Jun 09).

And despite the Gillard Governement coming to an accord with the miners over the tax dispute, smaller oil and gas

companies have indicated they may consider a campaign voicing their concerns over the changes to the tax threshold, which exempts "junior" coal and iron-ore producers.

SYDNEY: The propaganda war waged by miners and the government boosted media agency bookings by 23.4% in June, according to a report.

The advertising blitz, which dominated TV schedules during prime time programming, came to a sudden halt when Julia Gillard put the brakes on the government's campaign and asked miners to follow her example on her first day as Prime Minister.

The Goldman Sachs JBWere report, based on data supplied by media agencies, reveals solid advertising growth during May and June compared to the same period last year when the government and several mining lobby groups took to the airwaves and newspapers to dispute the proposed Resources Super Profits tax plan.

The unexpected boost, which accounts for about half of the total advertising market, provided the biggest benefit to metropolitan newspapers, which was up 20.2% in June, compared with growth of just 8.4% for the preceding five months.

GSJBWere analyst, hristian Guerra, said the company is now reviewing its adspend forecast in light of the hike driven by the miners and the government.

She said: "We now have agency ad market data for the six months to June, our ad market forecasts are under review ahead of the August reporting season. It appears metro FTA TV, out-of-home and online display are all performing ahead of our expectations.

"Positive growth was experienced in all media types. Of note, cinema agency advertising doubled on previous corresponding period, while advertising on pay TV grew faster than that on metro FTA TV. Pay TV also did not experience the negative growth in Jun 09 that the commercial FTA networks experienced.

Media owners and agencies could be set for another albeit smaller boost from the controversial tax, with smaller oil and gas companies now considering their own ad campaign to voice concerns over the changes to the tax threshold, which exempts "junior" coal and iron-ore producers.

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