Australia’s advertising market will grow by +10% this year to AUD 22.8bn – MAGNA report

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Australia’s advertising market will grow by +10% this year to AUD 22.8bn – MAGNA report

Australia’s advertising market will grow by +10% this year to reach AUD 22.8bn ($17.1bn) says Magna Global Advertising Forecast for June.


GDP will continue its growth by +4.2% this year on a real basis, following a very strong economic rebound in 2021 of +4.7%. Most of Australia’s population is now vaccinated against COVID (more than 95% of the 16+ population), which is another reason why the surge in COVID cases the past year has not led to a significant slowdown in ad spending. Mobility is returning to normal levels.

In this environment, digital advertising spending will grow by +13% this year to reach AUD 16.6bn. This represents 73% of total ad spending. This is behind only the United Kingdom, China, Canada, Taiwan, and Sweden, for highest share of digital advertising budgets as a percent of total ad spending. Digital growth in Australia (like in much of the world) is significantly stronger this year than it has been historically, and significantly stronger than expectations. Growth is led by mobile advertising spending, which will increase by +17% to AUD 11.8bn. By format, social media (+17%), video (+15%), and search (+12) are leading the way.

Linear advertising formats are growing by +4% this year to reach AUD 6.1bn. This follows 2021’s +12% growth for linear advertising sales, which represent 93% of the pre-COVID linear ad spending total. However, given that television is expected to continue eroding in 2023 and beyond, and print continues its long decline, linear ad spend will never reach the pre-COVID highs in Australia. Television spending will grow by +3% this year, and is regaining all the lost revenues during the pandemic. However, erosion will begin again in 2023 as viewing shifts away from television to digital formats. Key sporting events in 2022 that will boost TV spending, include the FIFA World Cup- which will generate huge Australian interest, now Australia has qualified – to be held in Qatar in October and ICC Men’s T20 Cricket World Cup in Australia in November. These will provide a boost to offset organic viewing declines in TV viewing.

Other linear formats are also expanding this year (radio +3% to AUD 1bn, out of home +15% to AUD 1bn), but print will continue its decline (-4% to AUD 711 million). None of the other linear formats regained its pre-COVID total, however. It will take one more year for OOH to grow back to pre-COVID totals (in 2023) and two years for radio (2024).

Looking forward to 2023, Australia’s advertising economy will grow by +5% to reach AUD 23.8bn ($17.9bn), with digital advertising again leading the way (+7%). While this is not nearly as strong as this year in 2022, it represents 2/3 as much incremental digital ad spending. The growth comparison is just more difficult as it is up against the tremendous performance from 2021 and this year rather than the extremely weak performance of 2020.

Says Nick Durrant (above), managing director, MAGNA Australia: “Magna foresee another year of strong advertising growth in the Australian market, with the total market set to surpass $22.8bn. Digital ad spending will once again be the key engine of growth with digital spend forecast to grow by 13% whilst Linear will grow by a still respectable 4%.

“The second half of the year however carries much uncertainty and aggressive RBA activity to combat inflationary pressure may yet see growth in the ad market constrained.”