Australian advertising recovery: ad budgets grew 6.8 percent in main media for first half of 2010

National advertisers have seen their actual advertising expenditure jump by 6.8 per cent in the first six months of 2010, exceeding their full year predictions already after a bleak 2009 for advertising revenue in main media.

Starcom MediaVest Group’s annual Media Futures survey has conducted a mid-year update for the first time ever, which has revealed that advertisers have shrugged off the global economic crisis to record strong increases in advertising expenditure and predictions for equally strong growth in the second half of 2010.

At the end of 2009, advertisers predicted that the Australianadvertising market was set for strong growth, with their expenditureset to grow by 5.3 per cent. That optimism has been justified withadvertisers reporting that their actual ad expenditure rose by 6.8 percent in the first six months of 2010.

In addition, 45 per cent of national advertisers reported a year onyear increase in actual expenditure compared to the first six months oflast year. Among those who have seen an increase in advertising spendin first six months of the year, the majority have seen increases of 20per cent or more, with the average increase being 31 per cent.

“Given that the global financial crisis during 2009 impactedadvertisers and mainstream media so badly, we decided it would beinteresting to see, for the first time since our Media Futures reportwas launched in 1985, if advertiser predictions for 2010 had come tofruition in the first half of the year,” Starcom MediaVest Group CEOJohn Sintras said.

“The Media Futures report released last December predicted thatadvertisers would quickly turn around from a mood of uncertainty toreturn to strong expenditure growth for most sectors of the media. Thismid-year update has shown that turnaround even in the first half hasexceeded advertisers’ full 2010 year predictions.

“This gives a very accurate indication that 2010 will be an exceedingly strong year.”

Free-to-air television has been the main beneficiary of increased adexpenditure in the first half of this year, with almost 6 in 10advertisers significantly increasing their TV budgets. Online continuedto be a strong performer, with 50 per cent of advertisers significantlyincreasing their online spend (including search and display).

Media expenditure has been reduced in newspapers, with just under sixin ten advertisers significantly reducing their spend, and magazinesalso received less budget from around 40 per cent of advertisers.

The Media Futures mid-year update also asked national advertisers topredict expenditure for the second half of 2010.  Advertisers predictedthat advertising expenditure would rise by 6.4 per cent.

Almost half (45 per cent) of national advertisers expected theirbudgets would increase compared to the last six months of 2009, while39 per cent said their budgets would remain steady. There would be anaverage increase in budgets of 29 per cent.

The Starcom Media Futures survey was launched in 1985 and is one ofAustralia’s most authoritative predictors of expected advertisingbudget growth over the coming year, and is the only survey of its kindof national advertisers and key media executives around the country. 

The survey is conducted by Roy Morgan on Starcom’s behalf via bothtelephone interviewing and online methodologies.  Respondents from theoriginal survey, drawn from Australia’s top 100 advertisers, werereengaged to participate in the mid-year update.