Ad spend down 2.7% in 2023, but remains above pre-Covid levels: SMI figures
The 2023 calendar year saw a slight drop in ad spend in the Australian media agency market, down 2.7% on the record levels seen in 2022, according to the latest Standard Media Index (SMI) figures from Guideline.
Despite the drop in spend, the market still managed to deliver the deliver the second largest total of annual ad spend ever recorded.
The result reflects a drop in Government and Political Party spend, which was boosted in 2022 due to both the federal Election and COVID response. The decline YoY to 2023 is only 0.9 per cent (or $72 million) when bookings for those categories are removed across both years.
Moreover, SMI figures put the top line result for 2023 at 8.2 per cent (more than $660 million) ahead of the pre-Covid level in 2019.
Guideline SMI APAC managing director Jane Ractliffe noted that Outdoor had a particularly successful year in 2023, reporting a record level of profit, up 15.1% (or 18.5% on an underlying basis).
“Outdoor media’s recovery from the COVID era has been quite extraordinary with growth continuing to accelerate each year since the pandemic with this year’s revenues now 70% higher than the COVID-hit year of CY2020 but also 43.3% above the CY2021 total even though the media had already reported a strong recovery that year,’’ she said.
“So Outdoor is doing well in a market that’s emerged as the second largest ad market of all time, with last year’s abnormal Federal Election boost delivering a huge record total. And despite higher interest rates and global uncertainty the CY2023 total is just 0.9% below that record level on an underlying basis.”
Digital was one of few other channels to witness growth in 2023 (up 2%), with digital video delivering an impressive 30.6% top line growth as BVOD and CTV markets continue to gain traction.
According to SMI the value of Video-based Digital campaigns was also up 7.4% in 2023, closing in on the traditionally larger Display inventory (+1.4%) with only $150 million now separating the two.
On an underlying basis, the Audio market delivered a slight growth of 0.5% when the growing podcast and streaming markets were also included. Cinema also record a positive growth of 5.8% on an underlying basis.
Elsewhere, News Publishing had an underlying decline of 14.4%t, while total Video was down 9.1% on an underlying basis.
Among key advertiser groups, the Automotive Brand category reported the highest increase in spend, up 11.3 per cent, followed by the Insurance category with
7.7 per cent and then Restaurants, up 8.6 per cent.
The Government category reported the largest decline with total ad revenues back by more than $100 million on CY2022.
Looking to the December month, and results saw the market up 9.1 per cent YoY with Outdoor the only major media to grow revenues (up 6.8 per cent).
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