Industry advertising revenue falls by 7.5% according to NewsMedia Works
NewsMedia Works has announced its 2016 revenue numbers claiming a fall in earnings with $2.28 billion dollars for advertising in 2016, while print continues to decline.
The statistics collected by NewsMedia Works, the industry body, and SMI shows the decline in newspaper-inserted magazines by 9.2% and 11.3%, respectively, in print. However, while the print industry revenue is declining, it still manages to account for approximately 80%.
The major print publishers in the data research, News Corp Australia, Fairfax, West Australian Newspapers and APN News & Media fell from 1.911m last year to 1.695m this year.
Contrasting the falling print advertising revenue figures, digital revenue from advertising grew by 9.9%, year-on-year, jumping from $430m to $473m.
Source: NewsMediaWorks
Jane Schulze, managing director at SMI, said: “Total News Media Index bookings from direct advertisers grew to 51.7% of all news media advertising expenditure in CY2016, up from 49.9% in CY2015, as agencies continued to reduce their spend on quality news media brands at a rate far higher than direct advertisers.”
“As an example, direct advertisers grew their ad spend on Melbourne’s metropolitan titles by 1.2% in CY2016 while agency spend on the same titles fell by 15.5%. It raises a valid question as to how the same titles could obviously deliver great value for direct advertisers while the agency market looks elsewhere.”
NewsMediaWorks CEO, Mark Hollands predicted media brands to be a source of trusted journalism for readers and advertisers.
“News publishers have maintained incredibly strong audience engagement, delivering quality environments that advertisers desire. Marketers who deal directly with publishers understand this and appreciate the value.
“Agency choices on behalf of their clients are out of sync with the many advertisers who choose to commercially engage directly with publishers.”
“The unfolding political events in the United States and Europe will ensure that publishers continue to deliver engaged, articulate and valuable audiences through 2017 and beyond. No media sector is better at delivering news and explaining the context of events from around the world,” he said.
Abigail Dawson was Mumbrella's senior content journalist covering event content. She left Mumbrella to move into an agency role in 2020.
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