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Media Intelligence : MT Resource 2010
11 MediaTitles research statistics: consumer ad spend U ntil late 2008 media bookings appeared to be buoyant; with several advertising categories performing ahead year on year, reflecting incremental Beijing 2008 ad spend- ing and encouraging pre-Christmas retail ad activity. However, with consumer and business confidence dipping rapidly in the face of the economic downturn, Australia’s marketing sectors were reducing costs across all areas of their operations. Marketing budgets in particular were under the knife, even more so in the beginning of 2009, as rapidly softening economic conditions saw cutbacks in the employment market, business investment and advertising activity across most media sectors. Not surprisingly, main media ad spend activity clearly reflected this significant downturn in late 2008 and into 2009; with the fiscal year finishing an estimated 6.2 per cent behind the previous fiscal year. Australia’s Top Advertiser Groups/Advertisers Overview • Reflecting the downturn in business confidence – among the country’s Top 25 Main Media Advertisers, who represented 21 per cent of main media advertising this fiscal year, just nine recorded increases year on year. • Wesfarmers Limited was Australia’s top advertiser, finishing the fiscal year with an estimated $220m spend, just 2.1 per cent below YOY. Ad spending included Coles Supermarkets, Target, Kmart, Bunning’s Hardware, Officeworks and Liquorland. • Two major retailers filled 2nd and 3rd positions. Harvey Holdings lifted from 4th last year to 2nd position with a 4.6 per cent increase to $135m (YOY ). With a substantial 8.7 per cent increase in activity, Woolworths Limited stepped up from 5th in 07/08 to 3rd; with an estimated $134m spend. • Other increases included 7th ranked Government Victoria (11.4 per cent), Unilever (4.5 per cent) climbing from 21st position in 07/08 up to 15th in the 08/09 rankings and 22nd ranked David Jones, with a strong 16 per cent increase YOY. Decreased Major Advertiser Spends • For some Top 25 Advertisers, 08/09 saw substantial downsizing in main media spending. The final impact of the Rudd Government’s 2007 election promise cutbacks saw the Federal Government, Australia’s 2nd biggest advertiser in 07/08, drop to 4th ranking, with an estimated 28.7 per cent reduction YOY. • Other notable decreases were Telstra Corp Limited (-22.8 per cent) slipping from 3rd to 5th, Nestle Australia/L’Oreal (-10 .6 per cent), Government NSW (-14.5 per cent) and Suncorp Group (-17.5 per cent) down from 8th to 11th. Will a soft landing lead to an early recovery? At the time of writing, our economy has seen strong signs of recovery, albeit cautious optimism among industry leaders and consumers. Retail spending appears to have improved, the Australian dollar is performing strongly against leading currencies and our key trading partners are all performing ahead of earlier predictions. How quickly this will translate into an advertising recovery is a little too soon to predict, however, some media are already reporting stronger advertising bookings and longer lead times. Although Australia’s economy was last in and appears to be one of the first to come out of the downturn, a quietly cautious attitude is prevalent about an accelerating recovery by the end of 2009. However, taking into account a soft first six months of 2009, advertising activity may not fully recover and return to the black until next year. In reviewing the fiscal year 2008/2009, Peter Cornelius, Managing Director Media for The Nielsen Company Pacific, says that while Australia’s advertising sector appears to have avoided the severe trauma experienced in other mature markets, the second half of the fiscal year clearly undermined media revenue performances. 2008/09 Consumer media ad spending falls 6.2%1 in the wake of the global economic downturn 1 Online display advertising spend estimates from January 2008 to June 2009 are included in the Top Media Advertisers Report. The Online data is included across all media commentary and data tables for the 18 months period however, for all YOY % performance comparisons against fiscal year 07/08 advertising activity, Online spends are excluded. p10-13 researchStats_conAdspend.10 10 8/12/09 2:09:38 PM
2009 - 2010
MT Resource Guide 2011