GroupM - Australian advertising market to grow 3.4% in 2023

Australia's advertising market will grow 3.4% in 2023, down from 10.9% in 2022, according to the latest forecasts from GroupM.

In comparison, MAGNA forecasts the advertising marketing in Australia to dip in 2023 but still grow by 5% to $23.5 billion.

Television’s earlier predicted 2022 growth of 4.8% year-on-year for Australia has been revised back to 3.7%, with the possibility of a decline in television revenues of -0.2% year-on-year in 2023 and Linear TV in decline each year from next year onwards.  

However, GroupM predicts that Digital Commerce will return to double digit growth in 2023 at 10%, a trend already evident in States such as Western Australia. New South Wales and Victoria. 

GroupM: “The revenue growth of digital pure-play platforms during the pandemic has continued into 2022, albeit at a slightly slower 14.8% rise. Global media platforms and retail media are key contributors and should see ongoing single-digit growth over the near-term. 

“Audio will grow 6% in 2022, rivaling 2019’s pre-COVID-19 revenue. Further advancements in the ongoing expansion of podcasting and streaming audio will drive growth in coming years. Revenue in 2023 is expected to grow 1%.” 

GroupM forecasts global advertising to grow by 6.5% in 2022, excluding political advertising, lower than their June forecast of 8.4% primarily as a result of lowered China expectations.  

For 2023, GroupM sees global advertising up 5.9%, with strong gains in connected TV, retail media and fast-growing markets such as India, a slight downgrade from a 6.4% estimate in June.