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

Taking performance cues from east Asian markets

As the ‘Asian century’ becomes ever more prevalent and the Fourth Industrial Revolution gathers speed, marketers are having to surf a tidal wave of creative destruction. The choice is stark: Embrace change, or resign yourself to a Darwinian fate.

Dr Chris Baumann

Associate professor, Macquarie University

Searching for social and marketing data

Many marketers, agencies - and everyone in between - get caught up on bubble references and data points. They’ll use Facebook best practice as the only best practice for Facebook executions and only consider metrics and responses of the one channel they’re expected to deliver on.

Isaac Lai

Connections strategy lead, VMLY&R Sydney

Why Australia needs more leaders

A few weeks ago, our Prime Minister, Scott Morrison took it upon himself to tell companies and their CEOs where to go when it came to societal issues. It wasn’t an organisation’s place to get involved. Instead, he said it should be left to governments to solve societies challenges.

Dan Banyard

Managing director, Edentify

Congratulations! So good to see a business turnaround with a good omni channel email lead strategy.Antanthonyidle.com

Anthony Idle

How Total Tools overhauled its omnichannel marketing

Read more

Well, you can always improve your service. Your customers will appreciate your efforts.

Mike Thompson

Report: Australian customer experience good but not great

Read more

Thanks for sharing! Terracotta Jewellery Online Shopping Ethnic Jewellery Online Shopping

Cotton Sarees Online

How data is driving the customers of a lifetime for BaubleBar

Read more

Informative blog. Xero is a well-known revolutionized accounting software, specifically developed to provide best User Experience and mak...

NavkarConsultancyServices

Xero evolves to fit a changing marketplace

Read more

>Writes article about how to show diversity in an authentic way>All featured opinions are from white women

Jennifer Metcalfe

Food for Thought: How can brands show diversity in an authentic way?

Read more

Latest Podcast

More podcasts

Sign in