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Digital biddable media makes up three-quarters of Aussie ad spend: GroupM

Digital biddable media will make up the majority of advertising spend this year, with big leaps across podcasts, retail media, and BVOD.

This is according to GroupM’s latest ad spend forecast This Year Next Year, which predicts modest ad-spend growth of 1.1% in Australia for 2024.

Although the report is a global mid-year forecast, the local data shows that digital biddable media will represent 76% of all ad spend in 2024, in Australia, with search taking the biggest share of digital media, with 37%.

Broken down by sector, retail media is projected to increase by 28.6% in 2024, reaching $1.162 billion, and “solidifying its position as a primary growth engine for brands”, according to the report.

Linear TV is forecast to decline 13.3% throughout the year, to $2.85 billion, while BVOD will see growth of 15.3% – with total TV to drop 9.5%, to $3.43 billion.

Digital-Out-of-Home will grow 7.3%, and now makes up three-quarters of all OOH revenue — forecast at $1.246 billion — while cinema will drop 2.6% for the year, to $117 million.

Digital audio — podcasts and streaming — will leap 16.4% this year, enough to offset the falls in the overall audio category, which is expected to remain flat.

“Economic uncertainty is front of mind for consumers, advertisers and politicians and continues to cast a shadow in Australia for the year ahead, but there are bright spots in the landscape,” said Melissa Hey, GroupM’s local chief investment officer.

“Despite the economic challenges it’s positive to see growth in the year ahead.

“Retail Media is seeing accelerated growth, solidifying its position as a primary growth engine for brands, podcasts and streaming continue to drive growth in audio, while the decline of linear TV is slowing.”

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