Independent media agencies are predicting a strong recovery from COVID-19, forecasting an increase in staff and revenue in 2021.
A survey of members of the Independent Media Agencies of Australia (IMAA) shows almost 90% expect to boost workforce numbers this year.
Almost a third (31%) said they had already financially recovered from the impact of the pandemic.
The numbers fit with increased media agency bookings, as reported by the SMI (Standard Media Index) for November and for early forward bookings for December and into January and February.
Forecasters also see growth ahead. Zenith sees 8% growth in ad spend in Australia in 2021 with a return to 2019 levels next year. Magna expects ad spend to recover by 11% in 2021 to reach $17.5 billion.
For those still feeling the strain, almost half (47%) the IMAA members surveyed said they expected to financially recover by the June quarter, with another 11% predicting a return to profitability by the September quarter.
The COVID-19 pandemic resulted in a significant decline in client spend for many agencies, with almost two-thirds saying revenue dropped by up to 50%.
The survey also showed working remotely will be the “new normal” for almost a third of agencies, with 30% saying working from home was now part of their work arrangements.
However, nearly half the agencies surveyed (46%) had returned to working from their offices, with a further 7% expected to go back early this year.
The latest survey also shows 2021 will be a big year for CTV, BVOD and digital, with respondents nominating these media channels as their top three predictions for advertising growth year-on-year.
The survey was conducted among the IMAA’s members in November 2020 to gather feedback on market conditions. The survey is conducted twice-yearly among members. The inaugural Pulse Survey in June 2020 revealed a similar sentiment among agencies on their COVID-19 recovery, with more than a third expecting client spend to increase.
“The Pulse Survey shows the resilience of the independent media agency sector. Although many of our members were, like the rest of the industry, hit hard by the pandemic and reduced client spend, we have found they are bouncing back quickly and looking ahead to a more successful 2021,” says IMAA general manager, Sam Buchanan.
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