Growth in ad spend by telcos will be slow and steady, according to Zenith’s latest Business Intelligence - Telecommunications report.
In Australia, the market is forecast to reach US$314 million by 2023, compared to US$365 million in 2019.
Digital advertising will rebound more strongly than other media channels, with spend expected to near pre-pandemic levels by 2023 to reach US$217 million, compared to US$224 million in 2019.
Globally, Zenith predicts that telecoms advertising will grow at an average rate of 4.5% a year to 2023 as it recovers from an 8.7% fall in 2020.
According to results from a ZenPoll conducted this month, the most important aspects for Australian consumers when choosing a network provider are Cost (57%), followed by Unlimited Calls & Messaging (38%) and Amount of Data (34%), and then Brand Reputation (27%).
In other findings, the top uses for smartphones among Australian consumers (excluding calls and messaging) were Checking the Time/Watch (63%) and Reading/Sending Emails (62%), closely followed by Social Media (57%), Maps/Directions (56%), and Online banking (53%).
“It’s clear that connection is a key driver in how people use their smartphones, whether it’s to look at emails, or go onto social media,” says Zenith Australia’s head of strategic insights, Kim Xavier.
“To reiterate this point, we also found that more than 60% of Australians feel being reachable and connected are the most important factors associated with telco services.”
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