World news – Report: Digital Advertising Spending Increases


As digital advertising spending rises, COVID and the bushfires have cut ad spend by $ 1 billion for 2020

A year-end increase shows that digital ad spending is COVID-induced Recession recovered and total ad spend increased 2 percent year over year, according to the latest Standard Media Index results. Jane Ractliffe, MD of SMI AU / NZ said this is now the third straight month that the AU market has grown year over year, which adds confidence that ad recovery will continue. « There is no longer any doubt that the market has moved well beyond the COVID recession and is rapidly rebuilding, » said Ractliffe.

Digital’s 15.9 percent increase in ad spend also resulted in a significant first: the monthly revenues of the national national digital marketers exceeded that of television for the first time in a month when Digital’s bookings rose to a record $ 223 million.

Spending on television advertising is also up 11 percent, with revenue growing 15.3 percent for the December quarter and a decline of just 1.2 percent for the December half-year. Ractliffe found that total ad spend increased 5.4 percent for the December quarter.

“More than half of all ad categories increased their media investments during this period. The futures data shows continued growth across a number of categories, ”she said.

The sharp increase in digital advertising spending in December was mainly due to the continued attraction of the social media market. After searching in the « Digital » category, the sector is now the second largest.

« Over the past six months we have seen an increase in demand for social media sites like Facebook, which continues to grow, and new entrants like TikTok, Pinterest and Snapchat, who are also benefiting from the surge in sales in this sector », said Ractliffe.

Due to the stronger results of the December and December quarters, the decline in the Australian ad market fell to 7.2 percent in the second half of the year and to 15 percent in the 2020 calendar year from 2019. However, the decline still results in a decline of 1 $ 1 billion is the amount of ad inventory sold in Australia in the year, with automobiles and travel making the largest contribution to the decline. On the positive side, ad spending has increased on groceries, banks and government . Ractliffe pointed out that the COVID pandemic, which emerged so soon after the devastating bushfires, had created a perfect storm for the local ad market and sparked a completely unexpected ad recession.

« We can, however, in SMI’s global data see that the same trend was seen in all of the demanding media markets, with advertising falling an average of 32 percent in Australia, New Zealand, the US, the UK and Canada in the second quarter, « she said. Advertising spending also increased in December in the same markets.

« So the recovery is not just happening in Australia, it is increasingly widespread as marketers adapt to a new ‘COVID-normal’ consumer environment, » said Ractliffe.

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