Zenith improves its growth forecast for the Australian advertising market

Credit: Jeremy Bishop via Unsplash

The advertising market in Australia will grow by 8% to 9% in 2022, according to the latest analysis from Zenith.

This is an update to forecasts made in December when Zenith predicted that total ad spend in Australia would increase by 5% this year.

“So far this year, we’ve seen relative stability in revenue and viewership,” says Elizabeth Baker, country head of investments at Zenith Australia.

“Revenue growth was slightly below our initial expectations for Metro TV, Outdoor and Radio, although they remain on a positive trajectory.

“However, these more mixed results were more than offset by digital revenue growth which to date has exceeded our original guidance, driving the overall market forward year-over-year.

“As a result, we have updated our overall guidance for 2022.”

The outlook for 2023 (4.7% growth) and 2024 (4.3%) is also positive.

Digital revenue for 2022 is expected to grow 12%, to more than $3 billion per quarter by the end of the year.

Joshua Lee, National Head of Digital and Data at Zenith: “With a first quarter already showing double-digit growth across all major digital categories, the trajectory for 2022 is promising.

“Video continues to show phenomenal growth, delivering the biggest increase of 24% over last year.

“And when surveyed by the IAB, 74% of buyers said they would continue to invest or increase their investment in digital video advertising formats, particularly in CTV and BVOD to expand television reach. linear.

“As audience migration continues and CTV’s daily viewership grows (up 18% YoY to 8.5 million Australians), brands can capitalize on the increased scale to continue to reach their audience in an attentive and engaging environment.

“Nevertheless, CTV’s sustainable growth will need to be driven by better controls on purchase frequency, the proven effectiveness of buyable formats as a mid-to-bottom funnel tactic, and greater use of first- and second-tier data. party to unlock addressable targeting and creative personalization.”

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