Australia’s print, TV ad markets continue decline as digital, cinema grow: Magna Global forecast
Australia’s print and television advertising markets are set to continue their declines in 2023, while digital and cinema spending will continue to grow, according to research from Magna Global.
Print and television advertising spending is forecast to decline by 13% and 12%, respectively, while digital ad spending will grow 8% to $20.5 billion. Also seeing growth are cinema at 15% and out of home at 5%.
Magna Australia MD Lucy Formosa Morgan
The overall Australian ad market is forecast to grow 4% to reach $26.2 billion despite a slow start this year when ad spending declined 1% in Q1 2023. A number of upcoming events are expected to help boost spending throughout the rest of the year, including the upcoming FIFA Women’s World Cup in July. Last year’s figures also benefited from the May 2022 federal election and the Beijing Olympics.
Digital advertising spending will account for 78% of total ad spending, and is expected to reach 80% of total budgets by 2024.
Mobile advertising saw the most growth up 11% to $14.7 billion, while the top three fastest growing formats are social media (10%), video (9%) and search (8%).
“It’s been a slower start to 2023 with challenging global economic conditions and consumers under increasing financial pressure, all of which has made for a jittery market,” Magna Australia managing director Lucy Formosa Morgan said.
“Much as we’re forecasting a number of the traditional channels to contract, particularly Linear TV, there are areas that remain strong, namely Digital (search, video and social) and OOH. Digital naturally is benefitting from consumption habits evolving and the traditional channels growing their digital offerings.”
Linear advertising formats are set to decrease by 7% to $5.7 billion, compared to last year’s 3% increase, due to the declines in television and print ad spending. Linear media is also at 88% of pre-COVID spending, and Magna said it does not expect to return to those levels in Australia again.
Next year, Magna forecasts that linear advertising revenues will continue to decline by 6% to $5.4 billion to represent 20% of total ad spending budgets.
Out of home spending grew 5% to $1.1 billion, while cinema spending grew 15% to $86 million. Radio was stagnant at $656 million, while print spending declined 13% to $365 million.
Earlier this month, Dentsu forecast that Australian ad spending will grow 3.2% to US$13.7 billion, slower from the growth rate from last year. GroupM meanwhile was more pessimistic in comparison, expecting the Australian advertising market will only grow by 0.2% in 2023.
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