The advertising market in Australia will grow 8% to 9% in 2022, according to the latest analysis by Zenith.
This is an upgrade from forecasts made in December when Zenith predicted total ad spend in Australia to grow 5% this year.
“So far this year, we have seen relative stability in revenue and audience," says Zenith Australia national head of investment, Elizabeth Baker.
"Revenue growth was slightly below our initial expectations for Metro TV, Outdoor and Radio, though they remain on a positive trajectory.
"However, these more muted results have been more than offset by digital revenue growth which, to date, has exceeded our original forecasts, driving the total market ahead YOY.
"As a result, we have upgraded our overall 2022 forecast."
The outlook for 2023 (4.7% growth) and 2024 (4.3%) is also positive.
Digital revenue for 2022 is poised to increase by 12%, reaching more than $3 billion per quarter by the end of the year.
Joshua Lee, Zenith’s national head of digital & data: “With Q1 already showing double-digit growth in all major digital categories, the trajectory for 2022 is promising.
"Video continues to show tremendous growth, offering the largest increase of 24% compared to last year.
"And when surveyed by the IAB, 74% of buyers shared they will continue to invest or increase investments in digital video ad formats, particularly in CTV and BVOD to extend the reach of linear TV.
“As both audience migration continues and daily CTV viewers increase (up 18% YOY to 8.5m Australians), brands can capitalise on the increased scale to still reach their audiences in an attentive and engaging environment.
"Nevertheless, sustainable growth in CTV will need to be driven by better buying frequency controls, proven efficacy of shoppable formats as a mid-to-lower funnel tactic, and greater use of first and second party data to unlock addressable targeting and creative personalisation."
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