SMI: Cinema, outdoor, retail and auto brands drive Australia's ongoing ad spend growth
- 05 December, 2022 16:02
Australia chalked up its 21st consecutive month of advertising spend growth in October, according to the latest Standard Media Index (SMI figures).
The latest report shows total ad demand grew 4.1 per cent in October 2022, putting the month just $3.9 million shy of the record set back in October 2017.
From a category perspective, the result was triggered by a 10 per cent year-on-year jump in ad spend from the retail category, as well as the return of automotive brand advertising, up 29 per cent compared to 12 months ago. And there is more expected to come, as SMI noted the auto category remains 25 per cent below the peak recorded in October 2018.
In addition, SMI saw record October totals from the insurance, communications, clothing/fashion accessories, travel, wealth management, education and technology product categories. Advertisers were also seen to be returning to outdoor and cinema channels in October. For example, outdoor spend was up 51 per cent year-on-year and back above $100 million, while cinema more than doubled in October.
Off the back of this and the consistent consecutive growth, SMI is reporting a record level of ad spend this financial year, up 4.9 per cent. Over the calendar year, total ad spend is up 8.8 per cent to another record level.
SMI A/NZ managing director, Jane Ractliffe, said the remarkable run is expected to continue into November, with forward pacings data showing ad spend equivalent to 86.8 per cent of last year’s November total has already been paid, excluding digital.
“The continuing confidence in our ad market is very much highlighted by the fact that these forward pacings are so strong, as the market delivered a very high record level of ad spend in November 2021 – the total was more than $50 million larger than any previous November month,’’ she said.
“We can already see ad spend representing 98 per cent of last November’s cinema bookings are confirmed; 91 per cent of last November’s radio bookings are confirmed and 90 per cent of last November’s TV bookings are confirmed.”
Ractliffe said TV and digital media also indicated normalisation, with TV bookings back 0.4 per cent and digital’s growth limited to 1.5 per cent.
“This trend looks set to continue as outdoor ad spend returns to `normal’ levels, as even though the media has achieved year-on-year growth of 51 per cent in October the total outdoor spend is still 15 per cent below that recorded in October 2017,” she commented.
“It’s clear the ad demand we’re currently seeing in the Australian market is broad-based, reflecting a strong underlying economy and a good sense of confidence in the market.”
On a final note, Ractliffe said SMI has never before reported ad spend above $3 billion in the first four months of a financial year, nor ad spend above $7 billion in the first ten months of any calendar year.
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