Report: Social media overtakes print to become the third-largest advertising channel

Australia's ad spend growth sits below the global average

Advertisers will spend more on social media platforms than on print for the first time this year, according to the latest Zenith Advertising Expenditure Forecasts.

Advertising expenditure on social media will grow 20 per cent this year to reach US$84 billion, while advertisers’ combined expenditure on newspapers and magazines will fall six per cent to US$69 billion.

Social media will be the third-largest channel for advertising this year, with a 13 per cent share of global ad spend, behind television (29 per cent) and paid search (17 per cent). Its growth is slowing as it matures, and is forecast at 17 per cent in 2020 and 13 per cent in 2021, when it will account for 16 per cent of all global ad spend. Zenith reports paid search advertising will exceed US$100 billion for the first time, globally.

While global ad spend growth will remain steady at 4.4 per cent a year to 2021, in Australia, ad spend growth is expected to sit below the global average, at 2.8 per cent year on year ($17.1bn).

Locally, search ad spend is expected to increase by an average of 3.7 per cent each year until 2021, at which point it will represent 25 per cent of total ad spend at $4.3 billion.

In addition, linear broadcast TV will account for only 20 per cent of Australia's total market spend by 2021, equivalent to $3.5 billion.

Zenith head of investment Sydney, Elizabeth Baker, said it has been a tough year for the linear TV sector in Australia, which appears to be bearing much of the brunt of marketing budget contraction, particularly across the banking, auto, and food categories.

“To reflect the economic environment and in consideration of latest SMI ad spend data, we have revised our 2019 TV forecast to -3.3 per cent. However, we should start seeing more stability in revenue as we cycle against a weaker 2018 back quarter," she said. “In better news for our TV networks, BVOD revenue is booming and we anticipate growth will continue as measurable trading across linear and BVOD content is enabled via the launch of VOZ in 2020."

Television advertising also continues to suffer from shrinking ratings in most key markets, and will slip from US$182 billion in 2019 to US$180 billion in 2021, accounting for 27 per cent of total ad spend in the latter year.

In contrast, Baker noted social is in a state of transition, with international platforms like TikTok, Pinterest and Twitch gaining significant traction among younger audiences, representing new opportunities for brands.

Ad spend growth is also slowing in Asia-Pacific, with 4.4 per cent growth forecast for 2019, after 6.9 per cent growth in 2018.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Building a human-curated brand

If the FANG (Facebook, Amazon, Netflix, Google) sector and their measured worth are the final argument for the successful 21st Century model, then they are beyond reproach. Fine-tuning masses of algorithms to reduce human touchpoints and deliver wild returns to investors—all with workforces infinitesimally small compared to the giants of the 20th Century—has been proven out.

Will Smith

Co-founder and head of new markets, The Plum Guide

Sustainability trends brands can expect in 2020

​Marketers have made strides this year in sustainability with the number of brands rallying behind the Not Business As Usual alliance for action against climate change being a sign of the times. While sustainability efforts have gained momentum this year, 2020 is shaping up to be the year brands are really held accountable for their work in this area.

Ben King

CSR manager & sustainability expert, Finder

The trouble with Scotty from Marketing

As a Marketer, the ‘Scotty from Marketing’ meme troubles me.

Natalie Robinson

Director of marketing and communications, Melbourne Polytechnic

If you think it can benefit both consumer and seller then it would be great

Simon Bird

Why Ford is counting on the Internet of Things to drive customer engagement

Read more

It's a good idea. Customers really should control their data. Now I understand why it's important.

Elvin Huntsberry

Salesforce CMO: Modern marketers have an obligation to give customers control of their data

Read more

Instagram changes algorithms every time you get used to them. It really pisses me off. What else pisses me off? The fact that Instagram d...

Nickwood

Instagram loses the like in Australia; industry reacts positively

Read more

I tried www.analisa.io to see my Instagram Insight

Dina Rahmawati

7 marketing technology predictions for 2016

Read more

The saying is pretty tongue in cheek. It's not saying that marketers are bad people, nor that they don't take themselves seriously. There...

LYF Solutions

The trouble with Scotty from Marketing - The CMO view - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in