MagnaGlobal:Australia ad spend figures down after tough Q1, but Pay TV forecast to increase 8.9%

The Australian advertising industry faces two tough quarters and is set to contract by 1.3% in 2012 with print and TV taking the brunt, according to MagnaGlobal.Weaker-than-expected results for the industry in the first three months has forced the research arm of Mediabrands Australia to revise down its forecast for the rest of the year.
The initial prediction of 1.5% growth has been downgraded, although managing director Victor Corones said short-booking and planning patterns made it hard to predict what will happen, and expects a resurgence in quarter four.He added: “The current economic backdrop continues to shake both business and consumer confidence and is unlikely to turnaround in the short term. 
“Even with the RBA easing interest rates it’s unlikely to boost confidence in the immediate short term.” Magazines are expected to face a 10.5% drop, newspapers a 9.5% contraction and TV to lose 1% of its ad revenues, while directories will also fall about 9.5% according to the figures.

Corones said digital video expenditure is starting to take ad dollars from TV, although pay-TV is forecast to grow this year by 8.9% as advertisers increase their reach.
Pharmaceutical companies are moving more business online, and away from TV according to the report, with internet revenues set to grow by nearly 20%.
Out of home and cinema will also continue to grow, while radio’s figures have been revised up from 0.6% decline to 1% growth.

14 May, 2012 Alex Hayes