The Australian advertising market is “slowing but positive” with MAGNA Global predicting +3.8% growth to reach $27.7 billion in 2024, after closing out 2023 with +4.9% growth to $26.7 billion.
The MAGNA forecast revealed a stronger-than-anticipated 2023, with digital media owners’ ad revenues growing +8.6% to $19.6 billion. Search advertising revenues jumped +7.6% to $9.9 billion, social media revenues surged +11.9% to $6.3 billion and digital video ad revenues grew 9.3% to $2.3 billion.
However, traditional media owners’ ad revenues dropped -4.2% to $7.1 billion, TV revenues decreased -8.7% to $3.9 billion, and publishing revenues fell by -12.4% to $700 million. Audio advertising revenues remained stable, while Out-of-home jumped 13.6% to $1.2 billion.
The report said, “Australia has seen linear advertising formats struggling because of general economic uncertainty and trading weakness. This decline has hit linear TV, especially in metro markets. Audiences continue to decline, and as costs become less resilient, revenues are also falling.”
The forecast remains positive for 2024, despite the slowing market. Magna predicts good growth for digital media owners’ advertising revenues which will reach $21.1 billion next year up +7.2% from 2023.
Search ad revenues are expected to increase +4.6% to $10.3 billion, social media advertising revenues will jump +13.3% to $7.1 billion, and digital video ad revenues will grow +6.3% to $2.4 billion.
MAGNA predicts traditional media owners will experience a -2.9% dip in ad revenues to $6.7 billion ($4.6 billion). TV revenues will drop -11.9%, to reach $3.5 billion.
Ros Allison, head of production & innovation at Magna Australia said: “In 2023 Australia has seen linear ad formats struggling with economic uncertainty and trading weakness. Tipping point now evident for linear TV as previously inelastic costs become less resilient, and revenues begin to follow audiences.
“We expect the Australian market to be subdued but positive into 2024, with easing inflation starting to loosen monetary policy. Accelerating growth for digital channels, including those owned by traditional media owners. New measurement metrics, continued digitisation and format innovation driving growth.”
Looking ahead to 2028, Australia’s total advertising revenues are expected to grow by +5.8% with Australia forecast to be the 5th largest global market in total ad spend. MAGNA predicts digital media will represent 83% of total advertiser budgets in 2028, up from 74% in 2023.
Across the Asia Pacific region, total advertising revenues are forecast to grow +6.3% to reach $304 billion, which is largely attributed to increasing investment in digital advertising revenues, which are forecast to grow +8.4% in 2024.
The APAC advertising market grew by +8.2% this year, which was higher than the global average of +5.5% and driven by India, Pakistan and China.
See also: MAGNA Global reveals Australia’s advertising market will grow by 4%
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