Ad spend bonanza or Armageddon? The headlines would have you believe it’s both
Don’t be fooled by a temporary government-led advertising bonanza, all signs point to a tough year for consumer-facing businesses says Spinach’s Craig Flanders.
A slew of recent headlines would have you believe ad land is in for a terrific year. According to IPG Mediabrands investment arm Magna, ad spend will be up 3.8% to $17 billion this year while a recent Dentsu Aegis forecast predicts growth of 2.4%.
Far be it from me to rain on this rosy outlook but consider this: in January, the Melbourne Institute and Westpac Bank Consumer Sentiment Index for Australia saw consumer confidence hit its lowest point since September 2017 driven by the ongoing slide in house prices, concern about global trade wars and political uncertainty.
The triple threat of Donald Trump, Brexit and a looming federal election in Australia is enough to make the most confident consumer tighten the purse strings. And this is a global trend with the Organisation for Economic Co-operation and Development charting similar sentiment around the world.
