SMI: Ten lifts its revenue share to 24% as agency spend closes financial year at $7.1bn
Network Ten has finished the financial year by lifting its share of media agency spend from 21.6% to 24%, despite the wider television market, along with newspapers and magazines, reporting declines in revenue for the period.
Rivals Seven and Nine both lost revenue share to Ten with Seven reporting a 38.5% (down 1.1%) and Nine a 37.5% share (down 1.3%) although all of these figures have been adjusted and are different to the 2015 reported figures due to the withdrawal of IPG Mediabrands from the metric in April.
According to Standard Media Index, media agency spend for the 2015-16 financial year finished at record $7.1bn. That adjusted spend of the major media agencies is up $233m on last year, a rise of 3.4%.
Finishing the year strongly were digital, up 18.7% to a total spend of $1.7bn (up $279.7m) for FY15-16 and Outdoor which was up 14.2% to $800.05m (up $99.7m), while agency spend on television declined 2% to $3.162bn (down $63.3m).
Magazine spend was reported down 15.7% for the financial year to $187.9m (down $35.1m) while newspapers were down 14.6% to $549.2m (down $93.5m).
The June SMI figures reports a slow end to the year with media agency spend down 2.1% to $631.3m, a result that came despite a record level of Federal election advertising expenditure.
SMI reported total Government Category ad spend hit $81.5m in June compared to the $35m spent in the month prior to the 2013 election, driven in part by the government’s education plan around the Senate changes as well as the election campaign.
“The Federal election has had both positive and negative impacts on Australia’s advertising market,’’ said Jane Schulze SMI AU/NZ managing director.
“With the government category so dominant this month, many advertisers chose to remain quiet which is evidenced by the fact that seven of the ten largest SMI Product Categories significantly reduced their year-on-year ad spend in June.”
SMI’s June numbers bore out the advertising hesitancy with television up 3.9% to $296.4m last month while other media such as Outdoor were down 10.7% to $58.9m.
Radio posted 0.8% growth in June to $55.2m and digital was down 0.5% to $158.4m.
