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Media Intelligence : July 2007
Our recently released Nielsen Top Media Advertisers report for calendar year 2006 clearly re ected a slowdown in the rst half that continued throughout the year and resulted in a minimal 2% growth in estimated main media spending. Advertising spending across many of the Top 50 Advertisers was subdued despite low unemployment gures, strong exports and a strengthening of the Australian dollar. This conservative stance re ected a slowing down in retail sales impacted by interest-rate rises implemented to cool down an over-heated economy. This also in uenced a reining in of spending in the new-home construction sector and the investment-property market. As the government introduced tax relief for lump-sum superannuation deposits, many investors o oaded their property investments into personal superannuation funds. Our main media-spend comparisons with calendar year 2005 re ect a period of consolidation and reinforced early industry predictions of tougher marketing activities throughout 2006. The Top Media Advertisers Snapshot There were signi cant changes in the Top 50 Advertisers rankings compared to 2005, with 50% reducing main media spending year on year and seven advertisers dropping out of the 2006 Top 50. Despite this churn, among the Top 10 advertisers (with a combined spend representing 12% of main media ad spending), only three reduced estimated spending. These were Nestle Australia/L Oreal (-6.3%), Woolworths Limited (-0.8%) and Procter & Gamble (-10.5%). Of Australia s Top 5 advertisers, Coles Group Limited (excluding Myer Ltd from both years) maintained number-one position with a substantial increase of 15.9% to $165--$170m. The commonwealth government lifted by an estimated 5.8% to consolidate their second- position ranking. The big advertisers to switch positions were Telstra Corp, moving from fth to third position with a major increase of 28.1%, and Nestle Australia/ L Oreal, who reduced their estimated spending by 6.3% to slip from third to fth ranking below Harvey Holdings, with an increase of 22.7%. The Top Advertising Categories A sound indicator of how the media sector was tracking was by reviewing how the major advertising categories performed, and in 2006 there were 16 of our 39 major categories in decline. Against this trend however, only three of the ten major advertising categories (representing 72% of Australia s main media advertising) reduced estimated spending. Probably the two of most concern were Motor Vehicles (Australia s second largest spending category) and Food (sixth biggest category). For the rst time in two years Motor Vehicles registered a 2.9% decline and Food registered a signi cant reduction of 9.8%. In summary, 2006 results went a long way in checking the strong surge in media spending over the previous three calendar years. As we review early indicators in 2007, there are signs of modest growth, however, it would be premature at this stage to predict how trends will unfurl across main media, although consistent industry commentary does suggest that the levels of retail activity and forward media bookings are slightly ahead of 2006. 6 MediaTitles Top advertisers A TOUGH 2006 SEES OVERALL MAIN MEDIA ADVERTISING LIFT BY A MODEST 2% Peter Cornelius, managing director of Nielsen Media Research, reviews the findings of their Top Media Advertisers Report.
2009 - 2010