Australian advertisers ignore global uncertainty with strong ad spend growth
Australian advertisers continued to shrug off global uncertainty through September, with total ad spend growing 6.6% to $774.9 million.
Australia's advertising market has shrugged off global uncertainty to record strong ad spend growth in September
The figures from SMI see the market just 0.7% or 5.5 million below the record September level in 2018.
The September growth also ensured a record level of September quarter ad spend, which increased 3.6%, while the calendar year to date is up 8.5%. SMI said the growth would continue in October, which is already showing strong ad demand.
If the growth rate continues, the annual total ad spend could reach a record level and move beyond the $8.4 billion achieved last year, according to SMI AU/NZ managing director Jane Ractliffe.
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"Australia's ad market continues to disprove the pessimists, with ad spend nudging a record level in September as Automotive and Travel advertisers return strongly to the market, and the Outdoor and Cinema media continue their extraordinary recovery from the impact of COVID," said Ractliffe.
"Overall ad demand is clearly very robust, and as there's a very strong correlation between ad spend and GDP, it does suggest the current wave of economic gloom may be misplaced. There may be a few advertisers taking a very cautious approach and reducing media investment, but the SMI data proves the vast majority are continuing to grow their ad spend."
Outdoor was the standout performer for September, with ad spend soaring 62.6%, while cinema grew 150.6% year-on-year. However, TV ad spend dropped 1.1%, and digital media reported slower growth of 5.1%, suggesting that outdoor's record performance has impacted other media channels.
Radio, news media and magazines all reported strong growth for September.