Australia, New Zealand Show Modest Ad Spend Growth In 08

Australia, New Zealand Show Modest Ad Spend Growth In 08

Australia and New Zealand withstood the shockwaves of the global financial crisis as long as possible, but by the end of 2008, ad spending took a hit.

In Australia, estimated ad spend in main media for the year was up 2 percent over 2007.  Year on year comparisons saw the first two quarters of the year posted growth of 14 percent and 5.5 percent, but by the third quarter, spending declined 0.5 percent while the fourth quarter saw a decline of 3.5 percent.

Media Outlet 2008 (US$000’s) 2007 (US$000’s) % Change
TV 3,157,160 3,184,216 -1%
Newspapers 2,773,024 2,640,745 5%
Magazines 928,759 901,670 3%
Radio 515,324 508,041 1%
Cinema 63,786 61,966 3%
Outdoor 392,705 383,791 2%
Other 227,671 231,145 -2%
TOTAL ALL MEDIA SPEND 8,058,427 7,911,574 2%
Source: Nielsen AIS

Retail remained the largest advertising category in Australia, accounting for more than 20 percent share of spending and posting solid 5 percent growth over the previous year.  Motor vehicles (+4%), and entertainment and leisure (+2%) rounded out the top three.  The travel and accommodation category posted 13 percent growth for the year, while media posted 6 percent growth.  Not surprisingly, decliners were led by recruitment (-6%) and finance (-5%).

The top 10 product advertisers in 2008 were dominated by 8 retailers and 2 telecommunications firms, marking no change from 2007.  The top two product advertisers substantially increased their ad spends in 2008: Harvey Norman Discount Stores (+26%) and Woolworths Supermarkets (+43%).

In New Zealand, after posting modest growth the first three quarters of the year, the fourth quarter marked the first signs of the impact of the global downturn in New Zealand.  On a quarterly basis, ad spend increased 3.4 percent, 2.7 percent and 1.1 percent in the first three quarters, only to drop by 3.2 percent in the fourth, resulting in an annual growth in ad spend of just 1 percent for 2008.

Media Outlet 2008 (US$000’s) 2007 (US$000’s) % Change
TV 1,089,143 1,064,894 2%
Newspapers 371,549 388,044 -4%
Magazines 138,534 144,297 -4%
Radio 204,178 192,131 6%
Cinema 9,916 11,263 -12%
Outdoor 76,850 74,193 4%
Other 97,915 97,415 1%
TOTAL ALL MEDIA SPEND 1,988,086 1,972,237 1%
Source: Nielsen AIS

The top ad spend category was leisure and entertainment, which posted 6 percent growth for the year.  Two categories showed solid double digit growth in 2008: government departments, services and community (+12%) and travel (+10%).  Meanwhile ad spending for investment, finance and banking declined by 14 percent.

Retail outlets dominated ad spending, with The Warehouse, a major discount department store chain, Harvey Norman and New World Supermarkets comprising the top three advertisers over the course of the year.