Big Brands Cut Back On Ad Spending
Several tech and household brands have reportedly slashed their social media and digital spending, following a drop in advertising dollars across every major media segment in October.
Latest numbers from the Standard Media Index (SMI) reveal a 12.7% YoY slip in digital spending, 7.3% YoY drop in TV exposure, and 20.8% dip in newspaper ads.
October’s “significant downturn” saw the local media agency market decline by 10.2%.
According to SMI, it’s also the first time every major media segment has dropped in the last three years.On a category basis, food, dairy products and produce notched the largest drop in ad spend, whilst positive growth stemmed from appliances, home furnishing and local retailers.
Of SMI’s 40 product categories, only 11 delivered ad spend growth in October.
Despite the drop, SMI asserts the year-on-year decline is driven by an abnormally high comparative period last year, spurned by the AFL/NRL Grand Finals and same sex marriage debate.
SMI claims whilst October’s results are disappointing, the reality is the market has returned to “normal growth trend levels”, as seen in the last nine years.
Latest numbers from Zenith and GroupM forecasts Australian ad spending to jump for the year, predicting +3.3% and +5.6% respectively.