Digital ad spending is forecast to grow just 7.5% this year, dipping to single digits for the first time in eighteen years.
Reported by Mumbrella, IPG Mediabrands’ media intelligence and investment division, Magna, expects local ad spending to jump 2.5% in 2019 – under half of the 5.3% notched last year – to $17 billion.
The figure is tipped to climb 3.4% next year to $17.6 billion.
Leading the charge is video with 16.1% year-on-year growth, followed by social (+11.9%) and search (+6.5%).
Search continues to represent over 40% of digital ad spending.
Magna claims digital advertising consists of 60% of brand budgets, with the majority affecting mobile devices.
Australia remains once of the ‘most advanced’ advertising economies globally, notching the second highest ratio of ad spending per capita.
Political and economic outlook continues to hamper local ad expenditure.
On a segment basis, print is further pressurised, with newspaper advertising spending constricting 13.5% this year. Magazines have tightened 17%.
Radio has remains relatively flat, notching just 1% year-on-year growth.
The Tokyo 2020 Olympics is currently the next big sporting event expected to prop up spending, with several Japanese consumer electronics brands tipped to lead the charge.
