Advertising spend will grow 6.5% in 2025, according to the latest forecasts by IPG’s MAGNA .
The end of year Global Ad Forecast report shows net ad revenues hitting $30.479 billion (AUD) next year.
The number is more upbeat than dentsu which last week released its end of year report forecasting the Australian advertising market to grow 3.8% in 2025.
MAGNA’s report said weakness in the Australian ad market reflects weak economic performance relative to historical Australian trends.
“Advertiser spend among linear media channels continues to stall because of soft consumer demand, falling discretionary consumption and household savings ratios holding steady despite inflation,” according to the MAGNA analysts.
Australian advertising revenue is forecast to end 2024 up 6.4% to $28.6 billion .
“The federal election, expected in March or May 2025, will provide some benefit to ad revenue for traditional media, but will not be enough to get linear TV out of its current trajectory.
“The ad market is pointing to a slower than expected recovery into 1H25. Gains coming for digital pure players rather than traditional media owner growth, where revenue is falling faster than audiences for linear TV and radio.”
In Australia, digital TV represents 15% of total TV ad revenues in 2024.
Overall, in Australia traditional media owners saw 31% of their ad revenue coming from digital ad formats in 2024.
Television revenue was weak in 2024, falling faster than audiences, and no net Olympic boost beyond a network share shift for the month, MAGNA said
Traditional media owners’ advertising revenue is forecasts to fall by -1.3%, totaling $6.7 billion.
Television advertising revenue is projected to drop -5% to $3.4 billion.
However, with some green shoots of consumer and brand confidence, consumer inflation easing back into the target range, and greater stability, MAGNA expects to see a small degree of natural correction for TV growth rates.
"The general trend will be to follow audiences regardless of complexity of currency and measurement. Federal election spend in May 2025 will buoy revenue in the first half and regional TV is protected versus metro trends."
Digital media owners’ revenues are forecast to reach $23.7 billion, up by +8.9%.
Digital advertising will account for 78% of total advertiser budgets.
Within digital advertising, search revenues will increase by +5.2% to $11.1 billion, social media revenues will rise by +17% to $8.9 billion and digital video revenues will grow by +4.6% to $2.5 billion.
Leigh Terry, CEO IPG Mediabrands APAC, said the APAC advertising market is thriving, growing by 7.5% to $289 billion in 2024.
“This growth is fueled by digital advertising, with search and social media leading the charge,” he said.
“While traditional media is seeing modest growth, digital pure players are driving the majority of the market share.
“The future is bright for digital advertising in APAC, with its share of total budgets projected to reach 82% by 2029.
“Despite some economic uncertainties, the overall market remains stable and poised for continued growth."
AN AUstralia chart from the MAGNA forecasts:
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