June ad spend smashes records of a decade

SMI data shows a sustainable advertising industry recovery as current demand lines up with pre-Covid demand

June has delivered the biggest month in ad spend for any month since Standard Media Index’s collection of ad payment data began in 2009, pointing to a sustainable recovery for advertising.

Australia's total advertising spend in June reached $754 million, up 44 per cent on June 2020, showing digital media also smashing records and all major media benefiting. 

“Who would have even thought this could be possible a year ago,” said SMI A/NZ managing director, Jane Ractliffe. She contrasted this spend to last June, when the market “simply crashed as the full brunt of the Covid crisis was felt”. 

“It’s quite phenomenal that a year later we can see total bookings for the quarter are just $9 million or -0.4 per cent below the last ‘normal’ pre-Covid equivalent quarter to June 2019.” 

SMI reported the June result was the third consecutive month that ad spend had recorded year-on-year growth of more than 40 per cent, with quarterly bookings up by 53 per cent on the same quarter in 2020. 

July demand for ads is in strong positive territory, driven largely by Tokyo 2020 Olympics broadcasting. SMI’s forward data underlines continuing strong demand with contracted August ad spend already at 83 per cent of last year’s total, and September bookings now at 38 per cent of last year’s total. 

For the first half of the calendar year, Australian national ad spend grew 25 per cent above the same six months in 2020. TV bookings also up by 25 per cent were in line, outdoor spend was up by 22 per cent and radio up by 20 per cent. This lifted full financial year results to be 7 per cent - or $500 million - more than the previous year. 

Credit: Standard Media Index

“It’s obviously been an incredibly challenging financial year for all media, with SMI showing the total market back by 6.4 per cent July to December but then the market switched into recovery mode as demand soared and the value of bookings jumped 25 per cent,” Ractliffe said. 

She said the data highlighted the size of the swing back to growth as ad spend plunged more than $250 million in the first half of the financial year but then leaped by more than $750 million in the second six months. 

Current advertising demand for the last three quarters is virtually in line with the pre-Covid 2018-2019 period. 

Don’t miss out on the wealth of insight and content provided by CMO A/NZ and sign up to our weekly CMO Digest newsletters and information services here. 

You can also 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




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

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Great read. I agree that it should be a perfect balance between interacting with your customers and knowing your brand. As a business, yo...

Caroline Scott

7 ways CMOs can improve their customer engagement game

Read more

Very true. Team development helps improve collaboration among the team members. I was able to improve my team's collaboration skills by t...

Quent Sinder

Why empowering others can help make you a great leader

Read more

CRM is a very good software that can help you succeed in your business. In my company, this system has allowed me to improve customer rel...

Anna Janicka

Sensis rebrands to Thryv and brings business software to Australian SMBs

Read more

AI Leasing Assistants have finally arrived for the multifamily industry. With so many to choose from it can be hard to figure out which i...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Blog Posts

Why if marketing is all you do, you’ll never be very good at it

OK, so you’re probably thinking: “Here comes another article to badger me about living in my bubble.” And also, “I bet this bubble-bashing piece will go on to explain how I can achieve better results through some heady dose of new life experiences, new routines and annoyingly different opinions on social media.”

Dane Smith and Toby Harrison

Ogilvy Australia

A leader’s role in rebuilding a culture of confidence

Every day, there are new predictions and studies on the future of work, the state of the economy and the unfolding global pandemic. All of which creates uncertainty and heightens the imperative of effective leadership.

Michelle Gibbings

Workplace expert, author

Confused About Your Customers?​

​I've worked in brand and marketing for more than 20 years. But there’s one area where I’ve found myself going around in circles and I must admit I'm becoming increasingly confused.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in