Advertising Spending in Australia: An Overview of Trends and Key Players
by Alisa Paul
Posted on 17-01-2023 02:15 PM
Advertising spending in Australia has been on the rise in recent years, with various industries and demographics contributing to this growth.
According to data from the Australian Bureau of Statistics, the total advertising expenditure in Australia reached $15.5 billion in 2019-2020, representing a 3.2% increase from the previous year. The largest contributor to this growth was the internet, which accounted for 34.5% of total advertising expenditure. This is followed by television at 27.8%, newspapers at 9.9%, and radio at 7.9%.
Key Industries Driving Advertising Expenditure
One of the key drivers of advertising spending in Australia is the retail industry, which accounted for 13.4% of total expenditure in 2019-2020. This is followed by the automotive industry at 12.4% and the fast-moving consumer goods (FMCG) industry at 10.4%. The finance and insurance sector also saw significant growth in advertising spending, with a 7.8% increase from the previous year.
Demographically, the highest advertising expenditure in Australia is among the 35-49 age group, which accounted for 29.2% of total expenditure. This is followed by the 50-64 age group at 24.9% and the 18-34 age group at 23.8%.
The Role of Google and Facebook
The digital advertising space in Australia is dominated by Google and Facebook, which together account for over 70% of digital advertising revenue. Other major players in the market include Nine Entertainment, Seven West Media, and News Corp Australia.
In terms of advertising mediums, digital advertising has seen the most significant growth in recent years. Online video advertising has experienced the highest growth rate, with a 9.9% increase from the previous year. Social media advertising also saw strong growth, with a 7.7% increase.
Future Outlook for the Advertising Industry in Australia
The advertising industry in Australia is expected to continue to grow in the coming years, driven by the ongoing shift towards digital advertising and the increasing use of data and technology in the industry. With the rise of e-commerce and the ongoing impact of COVID-19 on consumer behavior, we can expect to see continued growth in the digital advertising space, particularly in areas such as online video and social media advertising. However, traditional mediums such as television and radio are still expected to play a significant role in the advertising landscape in Australia.
Despite the growing popularity of digital advertising, traditional mediums such as television and radio still remain important channels for advertisers in Australia. Television advertising continues to be the most popular medium, accounting for 27.8% of total expenditure. Radio advertising also saw a slight increase in expenditure, with a 0.6% increase from the previous year.
Working With a Digital Marketing Agency
Working with a digital marketing agency can be a great way for businesses to optimize their advertising efforts and get the most out of their advertising budget. A good digital marketing agency will have a team of experts with a deep understanding of the digital advertising landscape, including the latest trends and best practices. They can help businesses to create effective advertising strategies, target the right audiences, and measure the success of their campaigns.
Overall, working with a digital marketing agency can be a great way for businesses to stay ahead of the curve in the rapidly changing digital advertising landscape. By leveraging the expertise and resources of a digital marketing agency, businesses can achieve better results and a higher return on investment from their advertising efforts.