Consumers have a multitude of options when it comes to content, which means advertisers have a myriad of ways to reach them. But, as any marketer will attest, it’s not that simple. Not only can consumers flip through channels, they can multi-task on multiple screens and live tweet their reactions and opinions in the blink of an eye. So with so many distractions, the odds seem stacked against advertisers hoping to connect amid the whirlwind.
Despite the challenges, calendar year 2014 saw no slowdown in advertisers investing in campaigns to connect and engage with their consumers. The Australian ad market grew by a healthy 7% in overall media spend compared to the previous year.
The combined media activity across all 39 major categories Nielsen measures is estimated at $13.9 billion* for the 2014 period. Overall media spend growth was also boosted thanks to advertising investments associated with the Commonwealth Games and the 2014 FIFA World Cup.
The Australian ad market continues to be dominated by the retail sector which continued to spend double the amount of the second biggest sector, motor vehicles.
Retail also had the strongest growth in online, with the IAB/PwC report citing it now contributes 10% of all online advertising, up from 8% in 2013.
As retail advertisers grew their share of online spend, it decreased slightly in metro press leaving that media to be taken out by real estate.
Media owners enjoyed the benefits of the ongoing property boom as real estate brands grew their share in online and increased their ad spend by 38% and 21% in metro press and metro radio respectively.
Looking ahead for the remainder of the year, consumers’ time and attention around media will continue to fragment yet increase. More video viewing on digital platforms to both native digital content and TV-produced content, as well as growth of subscription-based video on-demand (SVOD) across all platforms, are changing the way we look at the consumption of traditional media. While the risks and rewards are potentially high in this environment, the ability to stake a claim in the expanding industry pie is central to companies’ growth.
Measurement holds a key to enabling true understanding of today’s changing audience behaviour to inform dynamic content and advertising in an ever-fragmenting media world. Accordingly, to do so, audience measurement will transform dramatically to capture and accurately value the Total Audience.
*Total media spend of $13.9bn inclusive of $4.6bn online supplied from PwC – IAB Online Advertising Expenditure Report – 31 December 2014