Carat CEO Simon Ryan claims marketers are saving money ahead of a big year in 2016
Simon Ryan
The CEO of Australia’s second biggest media agency is predicting increased marketing spend in Australia next year, claiming marketers are saving their cash to spend against big events in 2016.
Simon Ryan, CEO of Carat, told Mumbrella that despite the global headwinds the outlook for the Australian economy was still positive.
“We are projecting 2.4 per cent growth this year and 2.8 per cent growth next year,” said Ryan. “When you look at what is ahead and the changes in the media landscape and the uplift in digital spend together, with the big events that will happen next year in terms of elections, new product launches by leading categories and the Olympics I think you will find there will be a general uplift in spend.”
Ryan emphasised that digital would be an ongoing driver of growth.
“There is a clear and absolute focus that digital media is driving growth as its share of total advertising spends continues to inflate year on year and digital is now the leading media in Australia,” he said.
“Display is the rising star driven substantially by online video, programmatic and mobile.”
Carat’s projections see declines in advertising share for television, newspapers and magazines while radio, cinema and outdoor sit with digital as the growth areas globally.
The media agency boss, whose clients include Woolworths, Holden and Mondelez, noted that elections for Federal Government, Australian Capital Territory and Northern Territory and the Rio Olympic Games would also contribute to growth.
“We are experiencing a significant change in market sentiment and consumer confidence which started in the first eight months of 2015 and is expected to be in play well into 2016,” he said.
“It may not be throughout the year but it will be at different hiatus periods throughout the year. Rio Olympics will definitely show a pump up in spend – Channel Seven is predicting anywhere from $150-$250m in revenue alone – and that will create a bit of a bump and I know a lot of clients are saving money now so they can go in next year.”
Nic Christensen
“Display is the rising star” – You got to be joking? Given the ad blocking moves by Apple its got to be all about content and in-stream social feed ads from now on.
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Has this bloke seen the dollar? Deluded that spend is going to increase, the only thing increasing is prices…..
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