Adspend rises in Australia

02 March 2011

SYDNEY: The Australian advertising industry is set to continue its impressive growth trajectory, having displayed a stronger performance than "even the greatest optimists expected" in 2010.

Business services group PricewaterhouseCoopers has recently updated its Entertainment and Media Outlook to reflect the robust figures recorded by the country's ad sector.

It reported that expenditure rose 13.7%, to A$12.4bn ($12.6bn; €9.1bn; £7.8bn), last year, more than doubling the expansion originally anticipated.

Free-to-air television enjoyed a 16.6% surge, measured against a projected 6.8% increase, coming in at A$3.7bn overall.

Pay-TV witnessed a similar trend as total spend jumped 18.4% year-on-year to A$394m.

The revenues from advertisers helped broadcasters offset a general decline in subscriptions.

Outdoor's 25.7% leap was five times the initial estimate, as this channel logged A$503m, while cinema's 16.5% lift, to A$104m, easily surpassed the 2.2% uptick first suggested by PwC.

Newspapers also almost tripled the forecast acceleration, climbing 9.7% and delivering A$3.8bn.

Elsewhere, the 1.7% gain secured by consumer magazines actually fell below the 2.2% level which had previously been outlined, as the medium drew A$657m from brand owners.

The web's A$2.3bn in returns constituted a 21% increase, four percentage points ahead of predictions.

"Advertising revenues across nearly every sector bounced back more vigorously than even the greatest optimists expected," PwC said.

Looking forward, it stated adspend would improve by 3.5% in 2011, and pegged the compound annual growth rate during the period to 2014 at 6.1%, valuing the category at A$14.7bn by this date.

Television should be worth A$4.2bn in four years time, with newspapers yielding just under A$3.9bn, and only A$20m in front of the internet.

Data sourced from The Australian; additional content by Warc staff