Advertising spend keeps dropping in Australia as sector recovers in US, UK
Advertising demand continues to drop in Australia, with Guideline SMI’s results for April showing a 5.6% drop in spend, year-on-year.
According to the results, larger product categories such as auto brand market and toiletries and cosmetics are continuing to grow, up 10.4% and 21%, year-on-year. Conversely, travel advertising spend has fallen 15% in April, while gambling spend has dropped 19.6%, and restaurant advertising down 13.6%.
Guideline SMI APAC managing director Jane Ractliffe said the Australian ad market continues to “differ significantly from that elsewhere”, with the US, UK and Canadian markets all reporting “strong growth” in April advertising demand.
“Australian ad demand is very much out of sync with similar sophisticated ad markets,” Ractliffe said, “as in the US in April we reported growth in ad demand of 9.5% YOY, in the UK the growth was 3.8% and in Canada it was 7.2%.”
Ractliffe notes the decline in ad demand across the calendar year is at a more healthy 1.9% with both digital (+4.8%) and outdoor (+3.4%) sectors in positive territory.
“As the market is so short it’s taking longer for some ad spend to come through, and that’s especially the case for Digital media as we’re now seeing that for March the level of programmatic and social media bookings has continued to grow significantly since the last data release,’’ she said.
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Nathan Jolly is the Features Editor at Mumbrella. He joined the team in July, 2023.
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