SMI: Digital revenue surges, print collapses as ad market finishes financial year up

The latest advertising revenue numbers have continued to show the collapse of print income with magazines and newspapers down more than $56m and $166m respectively, according to data from the Standard Media Index.

While Australian advertising market finished the financial year up 1.9 per cent with an overall spend of $7.5bn, print advertising recorded double digit year on year declines with the newspaper market contracting from $997.9m in June 2013 to $829.4m last month a 16.9 per cent decline.

Metropolitan print was the worst impacted down 18.8 per cent from $653.3m last year to $529.6m in June while magazines posted a similar decline with a 17 per cent drop from $329.7m in June 2013 to$273.5m last month.

Newspaper revenues have declined 39 per cent since 2010 when SMI reports revenues 0f  $1.362bn for the medium, whilst magazines are down 40 per cent from $456m that year.

The overall television market was up 1.5 per cent year on year to $3.63bn with metropolitan television up 1.8 per cent to $2.6bn and subscription TV had $410m up 1.2 per cent.

Among the commercial networks Seven and Nine both had increases in revenue with Seven up to 42 per cent from 38.2 per cent last year and Nine at 40 per cent compared with 38.5 percent last year, while the struggling Ten Network had an 18 per cent revenue share last month. For the year Seven’s revenue share was 41.9 per cent, Nine’s was 37.9 per cent while Ten was 20.2 per cent.

The key winner from the decline of print continues to be digital which again surged 20.9 per cent year on year with the medium posting a revenue result of $1.42bn, which has almost doubled from three years ago when it was $776.5m.

Outdoor advertising and cinema both posted steady rises of 5.6 per cent and 4.6 per cent respectively while radio was relatively stable with a 1.2 per cent increase.

The numbers for June reveal that overall bookings were down last month by 2.9 per cent or $20.3m, after last year being boosted in the run up to the Federal Election.

Nic Christensen


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