Australia’s ad market is ‘uncertain and volatile, return to ‘slight growth’ expected in 2013
Australia’s advertising market is “uncertain and volatile” with print and television under continued pressure and only 0.7% growth expected for next year, according to ZenithOptimedia’s global adspend forecasts.
This compares to 4.6% growth expected for the global ad market next year, led by emerging markets and digital media.
Key advertising categories in decline in Australia currently are finance, toiletries/cosmetics and food. Automotive, pharmaceutical and alcoholic beverages are helping to uphold a “flattish” result overall now, the media agency said.
Consumer spending continues to be a worry. “While there was a boost in the March quarter, this was largely attributable to government subsidies provided in advance of the carbon tax. The June quarter consumer spending figures have shown a return to a weaker level,” reads the report, released today.
The report noted that while Australia’s economy continues to outperform the global economy, a cooling of the mining sector and falling commodity prices are key challenges ahead.
The agency concluded: “Early indicators of adspend in 2013 suggest that there will be a return to slight growth.”
Australia’s advertising growth – 2000 to 2014 (forecast)
Source: ZenithOptimedia
This is not surprising, the last 9 months have witnessed many companies shedding staff and trimming costs, as if to presage worsening trading conditions.
Many pundits say were are in a period of asset deflation, slow growth and negative retail slows growth. Perhaps the China price paying miracle for Ozzie iron ore is gone forever — and many Mining companies are cancelling projects due to unrealistic 2 year price projections.
This means OZ land has to adjust its expectations, as it meets the onsluaght of GFC version 3, with many Euro countries going ionto recession.
it is belt tightening and no useless impuslive buying from now on
the world has changed forever; perhaps never changed since GFC1 in 2008
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Less revenue means less money for content, which means more rubbish like ‘Big Brother, Lara Bingle and mind numbing shows like ‘The Shire” which means less ratings which means less revenue….. This is a vicious circle that will no doubt “end in tears”
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