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31 December 2009
National advertisers are predicting a 5.3% increase in main media ad spend in 2010, according to Starcom MediaVest’s Media Futures survey conducted in November. A sample of 450 Australian national advertisers and senior media executives were surveyed by Roy Morgan research for the annual Starcom study.
Advertisers’ growth predictions mark a reversal of declines forecast for 2009 main media ad spend, when falls of 2.4% were expected. Relatively healthy growth for above-the-line media spend was also predicted by the media executives surveyed, with a 4.6% rise anticipated.
Below-the-line media achieved buoyant growth expectations for 2010. Spending on online and viral email, PR, POS and addressed mail is predicted to rise by 5%.
Just over half of advertisers forecast a rise in their main media budgets, with online spending increasing in more than two thirds of cases.
While around a quarter of advertisers predicted an increase in free-to-air TV and radio, nearly 20% anticipated increased spending in magazines and out-of-home.
The sectors identified as the key growth areas were automotive and financial, which both slumped dramatically during 2009. Around 70% of media executives also predicted growth to come from retail, telecommunications and government spending.
Meanwhile only minimal growth is forecast for global ad media spend.
GroupM’s “This Year, Next Year” study predicts 2010 global spend will rise 0.8% and a similar increase of 0.9% is forecast by ZenithOptimedia, which also predicts 3.9% global growth for 2011 and 4.8% for 2012.
The agency forecasts strong growth for the global online sector, with internet ads up 9.5% in 2010 and video the big growth area for display. Print media will be challenged by low levels of global growth forecast up to 2012.
Sources: AdNews, 09.12.09 “Global ad spend to make remarkable turnaround”; 10.12.09 “GroupM revises 2010 forecast up”; 14.12.09 “Advertisers upbeat on 2010 spending”: B&T Weekly 14.12.09 “Advertisers predict 5.3% spend growth”.