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Slowdown in Oz Adspend Growth

News, 16 September 2005

Advertising expenditure Down Under is still growing, but the boom times of 2004 appear to be over.

Latest figures show adspend was up 9% to A$4.4 billion ($3.39bn; €2.76bn; £1.85bn) in the first half of this year, less than the 10.4% rise notched in the same period in 2004. The Australian advertising market is worth A$10.4bn.

The prospects for H2 are less robust, with media buyers reporting slower demand. They expect full year growth to be between 5% and 6%. Researcher Mitchell and Partners, however, believes growth will end at around 7% for the full year

Says media agency Starcom's chief operating officer John Sintras: "It's not a bad story. The market is still growing but people who arrogantly assumed we would continue at last year's levels were being unrealistic."

In H1 TV ad revenues were up 7.3% - metro markets rose 6.4% to A$1.16bn while regional increased 4.8% to A$329.8million.

Pay TV posted the biggest increase of any media sector - 37% to A$74.5m - as it continues to poach revenue off the free-to-air networks.

Major national advertisers were the most bullish in the June half, lifting their ad expenditure 13.3% to A$2.86bn.

Data sourced from Sydney Morning Herald; additional content by WARC staff