Australian ad market forecast downgraded, 1.5% growth expected next year
Australia’s advertising market continues to be uncertain, with a weak Christmas retail period likely, according to a report from a media agency for the month of December.
Zenith Optimedia has downgraded its ad spend forecast, with just 0.1% growth predicted for the full year 2012.
“Despite what would be considered a relatively healthy economy in comparison to global markets, this does not necessarily translate into a good performance in the ad market,” the report reads. “The economic picture is bolstered by the resource sector, and that is not a big advertiser.”
Also worrying is that the strong Australian dollar is putting pressure on commodity prices and weaker conditions in international markets are dampening demand overall from global advertisers – and more than half of adspend in Australia comes from global brands.
Although retail is struggling, it is holding firm as Australia’s largest advertising category – with finance, real estate, food, government and cosmetics the key sectors shrinking.
The Federal Election is less than one year’s time will provide of brief boost to the ad industry, but there is “not much else on the horizon,” according to the report.
A modest 1.5% growth is expected in 2013.