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Australian advertising growth slower than global average

Advertising spend is forecast to grow by 5% globally this year, but Australia is slipping behind other countries, despite returning to growth.

This is according to dentsu’s Global Ad Spend Forecasts, which covers 56 markets across the Americas, AsiaPacific, and Europe, Middle East and Africa.

Australian ad spend is forecast to grow by 1.8% in 2024 to reach A$19.7 billion. While this is a welcome return to growth, after dropping 0.8% last year, it pales in comparison with the other leading advertising nations.

There is 6% growth expected in the UK, with the US ad market tipped to grow by 5.9%. China is expecting a 4.8% leap, with a 4% increase in France, 3.4% in Germany, and 8.7% in Italy.

Latin America will see a 7.6% boost, with Italy up 8.7%, and India rising 6.8%.

Australia’s tepid rise will bring down the expected ad income in the Asia Pacific region, which will grow 4.2% this year.

According to the report, major events such as the Paris Olympics and Paralympics will boost advertising investments, globally, while the aviation industry expects a historic high in 2024 for passenger traffic and revenue.

Ad spend in the media and entertainment industry is expected to rise 6.5% in 2024, “driven by the boom of digital platforms that cater to evolving consumer preferences for on demand content”.

Australia’s ad economy will pick up from 2025, according to these projections, with an expected 2.6% rise that year, followed by a 2.3% jump in 2026.

Of course these are merely projections — you’ll note the 2019 projections didn’t account for a global pandemic — so take it all with a grain of salt.

But the takeaway seems to be that Australian ad spend is lagging behind the rest of the world. Despite this, Ken Lam, iProspect’s national head of investment, is hopeful.

“The Reserve Bank of Australia’s recent comments highlighting the stablisation of real incomes, with growth expected later this year, which will drive growth in consumption is positive for the marketing and advertising industry,” he said.

“With it likely that interest rates will remain on hold for the remainder of the year, with a cut potentially on the horizon in December, there should be greater optimism for advertisers in H2 2024 with opportunities for brands to accelerate growth in a more buoyant market.”

To read the full report, including global breakdowns and sector figures, click here.

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