Australian ad market to grow just 0.1% this year predicts Carat

Media agency Carat has hugely revised down its estimated growth for the Australian ad market to just 0.1 per cent for this year, after predicting it would grow by 2.1 per cent in March.

Despite this the Dentsu Aegis network agency has posted some bullish ad spend predictions for Asia Pacific, reckoning that the region will grow 5.4 per cent year on year in 2014 and even faster in 2015.

Year on year % growth at current prices
2014 2015
GLOBAL 5.0 (4.8) 5.0 (5.0)
ASIA PACIFIC 5.4 (5.6) 5.9 (5.9)
CHINA 7.6 7.9
INDIA 8.7 9.0
JAPAN 2.0 1.7
INDONESIA 21.8 26.2
VIETNAM 35.2 23.9
  Figures in brackets from previous forecast in March

The numbers are a gloomy prediction for the local ad market, which has remained flat over the last year according to Standard Media Index data.

Figures are calculated based on ad spend data net of negotiated discounts and with agency commission deducted, in current prices and in local currency. The agency does not provide actual spend figures, only percentage growth projections.

The fastest growth in the region is to come from Vietnam, with 35.5 per cent growth expected this year, with Indonesia also set to rocket.

Dentsu Aegis Network boss Jerry Buhlmann, said: “Dentsu Aegis Network’s latest advertising forecast gives us increased optimism for the outlook of global and regional advertising spend. With the global recession further behind us and a healthy trend of 5 per cent year-on-year global ad growth, there is positive momentum building across the industry.

“While digital continues to headline market trend discussions, the components within this dominant media now provide the interesting chapters, with the opportunities in mobile leading the debate. With changes and trends in consumer behaviour driving business opportunities, brands need to deliver innovative and integrated solutions to reap the rewards ahead.”


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