Australian retail breaks advertising spending record: Nielsen
Motor vehicles, travel, and insurance companies amped up their advertising spend during 2023, but retail had a record year, as Nielsen reveals Australia’s Top 20 categories by ad spend for the year.
Retail was far and away the top advertising sector across the nation, despite the interest crunch hitting discretionary purchases, with a combined spend for the year of $2.56 billion – a record amount.
Communications companies were second, with $818 million, followed by motor vehicles spend, up 10% from 2022 to hit $661 million.
The travel and accommodation sector also jumped, by 6%, to $596 million, while entertainment and leisure invested $583 million in advertising.
“In a year marked by massive shifts in consumer behaviour and changes in the way Australians consume media, these numbers highlight the strategic recalibration brands are making to remain relevant,” Nielsen Ad Intel’s Australia commercial lead, Rose Lopreiato, said.
Motor vehicles increased 10% year-on-year, insurance was up by 7%, and travel jumped 6%, while retail spend dwarfed all.
“Retail’s record $2.56 billion investment in advertising reflects the need for retailers to advertise to stay connected with consumers as they diversify how and where they purchase,” Lopreiato said.
“These Nielsen Ad Intel insights not only give us a great snapshot of the changing media landscape in 2023, but serve as indicator of the economic and consumer trends brands need to be on top of to successfully navigate 2024 and stay ahead of their competition beyond that.”
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Nathan Jolly is the Deputy Editor of Mumbrella. He joined the team in July, 2023.
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