Online on the up; disastrous decline for magazine ad spend

Australians are spending less time with every medium apart from online, research by Nielsen Online suggests, while magazines suffered a catastrophic drop in display advertising in January according to a separate piece of analysis.

According to a survey of 2000 Internet users, reported in the Australian Financial Review today, the biggest growth is coming in the amount of time spent watching online video – up from 2.5 hours a week to 4.6 hours.

However, the survey methodology is potentially open to challenge – as it takes place online 100% of the particpants are indeed online. And it also fails to differentiate between functional uses of the internet such as using email compared to site surfing and other acitvities where users would be exposed to commercial messages.

The findings:

  • Internet: 16.1 hours per week (up from 13.7)
  • TV: 12.9 hours (down from 13.3)
  • Radio 8.8 hours (down from 9.9)
  • Newspapers 2.8 hours (down from 3.1)
  • Magazines 2 hours (down from 2.2)

And magazines’ woes are confirmed by an analysis of advertising expenditure in January, reported in today’s Australian. According to Nielsen data, spending on magazines dropped by a shocking 25% in January, compared to a year before. Outdoor advertising and metro newspapers were also badly hit. Only cinema advertising and regional bucked the trend.

In decline:

  • Magazines – down 25.2%
  • Outdoor – down 18.4%
  • Metro press – down 14%
  • Free TV – down 7%
  • Radio – down 6.1%

On the up:

  • Cinema – up 44.1%
  • Regional press – +10.2%

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