The sun continues to shine on the Australian advertising industry.

Optimistic forecasters say the market down under will grow by 10.6% overall next year, bringing the total to A$10.07 billion ($7.7bn, €6.6bn, £4.2bn). And the climate is set fair for another year after that.

Steve Allen, managing director of media agency Fusion Strategy, says growth will take place across the board, from TV and radio to outdoor and internet.

There are, however, clouds on the horizon, according to other commentators. A rise in fuel prices could dampen the enthusiasm of consumers, worries Charlie Nelson, director of Australian trend spotters Forseechange.

He warns: "At the moment, Australians seem to want to save more," although he is optimistic this trend will reverse in 2005.

The US economy will also influence advertising spend as between 60% and 70% of national budgets are controlled offshore. Nelson cites the media recession of 2001 and 2002 when multinational companies slashed their local budgets in line with a depressed global market despite high consumer spending in the Antipodes.

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