Australian Ad Market Will Be Worth $16.4 Billion In 2019

|

100-australian-dollar-money

With the fast growth of advertising in Australia, outdated advertising strategy and uncoordinated mobile banners need to be left behind. The total Australian advertising market is expected to grow to $16.4 billion by 2019, up from $12.9 billion in 2014, with the growth and challenges lie ahead for sectors in the media.

Australian advertising market has increased of 2.4% in 2014, compared to 6.4% in 2013. Many ad experts predict that the Australian advertising industry will see an average growth of 4.8% over the next five years, reaching (more or less) $16.4 billion.

The advertising growth rate for 2015 is predicted to rise by 3.2%, including consumer spending, entertainment and media industry which will be worth $43.4 billion in 2019 (with 4.2% growth a year). Internet advertising is expected to rise by 13%, to reach $8.2 billion by 2019. Free-to-air TV is expected to hit $3.8 billion, $1.5 billion for newspapers and $1.3 billion for radio.

The free-to-air television ad market is predicted to be stagnant over the next three years and as witnessed with the emergence of more SVOD (subscription video on demand) platforms, broadcasting companies are now looking for new revenue streams and ways to capture the increasingly fragmenting audiences.

Nowadays, marketers will need to expand their focus well beyond driving consideration and taking the right decision. Here are some key points they need to think about before making the next move:

  • Audience movement will be the new data point.
  • Sports rights will remain big business in free-to-air TV.
  • The launch of Apple’s Watch will open up the market “significantly”.
  • Search will continue to be the dominant internet advertising rising from $2.4 billion now, to $3.9 billion by 2019.
  • Display advertising is forecast to increase from $1.4 billion to $2.2 billion and that classifieds will grow from $929 million to $1.363 billion.

Australia has been challenged by two media suppliers that dominate the market and strict regulations, yet most marketers have honed their skills in content. It just a matter of time when those media companies will bite the bullet, start investing and being brave about various parts of their business, even make some interesting acquisitions.

On the agency side, the larger ones are all part of global holding companies, so they benefit from the tech investment there. Australia is a strong media space, but it has been challenged historically (as it’s been protected) with regulations and policies that many have complained about.

“Innovation that’s going to be really important for media companies is going to be service innovation and relationship innovation, business model innovation and distribution innovation. In service innovation – the classic example for media companies is really automation – because the idea of service innovation is to take the friction out of your relationships with your customer. So in the B2B media space, you take the friction out of your relationships with your media agency, but then other forms of service innovation that I’ve seen media companies around the world do is to create self-service platforms for small to medium size businesses and they allow them to book their ads and also create their ads. Radio networks are doing that. Innovation is about content and data and location, so that’s improving the relationship so you send the most targeted messages possible, so targeted that you come across as being helpful.”

In a nutshell, Australian advertising market has been broken down by media and features insight from investors and the “leaders of innovation”.