Advertising spending in Australia is forecast to hit $23 billion by 2023, according to analysis by PwC.
The sector is expected to grow at a steady compound annual growth rate of 7.8% with internet advertising and subscription TV continue capturing an increasing share of spend.
PwC’s 18th annual Australian Entertainment & Media Outlook analyses trends and consumer and advertising spend across 12 segments.
Overall, the media and entertainmnet sector is forecast to grow by 4.% over the next five years, up from 3% in 2018, with players increasingly breaking away from legacy models.
Australia's advertising spending is forecast to reach $23 billion by 2023 from $15.8 billion in 2018. The annual comound rate of growth at 7.8% is higher than the 4.3% global outlook estimated by PwC.
PwC's view of the current, and 2023 forecasts, for the advertising market:
And the entertainmnet and media market by dollar value:
The interactive games market will be the fastest growing segment in consumer spending, forecast to rise at a compound annual growth rate of 15.6% to $7.1 billion, up from 8.5% in 2018.
In-game micro-transactions and the rapid adoption of 5G and cloud-based technology will be primary growth drivers in the interactive games market, followed by e-sports at 18.3% and games advertising at 17%.
Justin Papps, PwC Australia Partner and Entertainment & Media Outlook Editor, says players in the 12 segments have an urgent focus on implementing the organisational transformation necessary to deliver growth.
“There are two primary drivers behind this urgent search for growth we’re seeing across the entertainment and media industry," he says.
"Fragmentation of audiences driving a ‘race for reach’, with consumers spending more of their time across multiple platforms, events and devices.
"The second, in contrast with the first, is consolidation driven by media owners’ sprinting to meet marketers’ demands by acquiring mass-reaching assets."
To combat these forces, entertainment and media organisations are increasingly breaking away from legacy models defined by platform.
In radio, opportunities for growth in podcasts are being further developed.
Free-to-air television is seeing increasing returns from video-on-demand platforms, where programming is moving beyond catch-up and into back-catalogue viewing.
“Entertainment and media organisations that make the critical link between growth in their share of the marginal minute of consumer attention and their revenue growth will be the ones to succeed in the search for growth,” says Papps.
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 firstname.lastname@example.org