The AdNews end of year Perspectives, looking back at 2024 and forward to next year.
Brian Gallagher, Chairman, Boomtown
From a media landscape perspective, I am marking 2024 an “incomplete”.
After anticipating a year of media sector consolidation, ad growth across most domestic media platforms and action on consumer data protections - which could stimulate positive change in the digital supply chain - I observe the year has fallen well short of its potential as pretty much none of that has taken place.
To add to this from an advertising perspective, not much evolved in 2024, as brands are still chasing short term sales outcomes at the bottom of an increasingly ineffectual funnel, striving for ad effectiveness while giving up millions on ad wastage, ad fraud, supply chain exploitation and mark-ups.
We’re working in an industry of contradictions. Value and efficiency are the target, while the percentage of working media inside digital ad budgets is at its lowest level ever. Who is winning? No one in our domestic advertising economy, as more than $15 billion a year makes its untaxed way offshore. Don’t “at me” about big tech paying actual tax here. That might be an acceptable trade off if the economic impact of that offshore platform expenditure was an investment that justified the expense. On any reasonable measure, it doesn’t.
There has been positive movement towards limiting further damage to our young people through some limitation on their currently unfettered access to social media platforms. I still need convincing that these actions will have the desired impact. However, some action must be better than none at all.
2024 has been a year of analysis paralysis. Not a lot of concrete action off the back of endless discussion about what must be done to improve advertising outcomes and media buying efficiency while not much changes at street level. The focus seems to be on day to day survival on all sides.
Negative sentiment is driving decisions across the market.
Environments like these, driven by economic uncertainty, showcase the cracks in markets, companies, departments, processes and systems. While global advertising growth has been strong in 2024, tracking at around 6% so far and estimated to hit $US1 trillion for the first time, our own market has been anaemic by comparison, largely due to the focus on acquisition tactics over brand strategy. Tactics that stunt growth for brands, while making no useful impact on brand health to protect future growth - these are the tactics that fuel high growth for offshore platforms, but not their customers.
This is the year where the role of media buyers has been brought into sharp focus as we look to them to support the innovation being delivered by local media. Innovation and development have been continuing across most domestic media vendors despite current market conditions, predominantly in the broadening of distribution, provision of enhanced measurement, data driven targeting tools and dynamic creative execution.
Many buyers seem slow to support domestic innovation even when the evidence shows that the audience is following and engaged, while at the same time increasing investment in less transparent supply chains. There is a lower than justifiable take up of local media opportunities across video, audio and display, which is disappointing.
Advertiser investment in these products will deliver required outcome top and bottom of funnel; they are accountable, measurable, transparent and brand safe. Most importantly the investment in domestic media innovation serves the community by ensuring that revenue is generated for all, ad investment stays onshore and the economic benefits of a robust media sector play out for all Australians.
A slightly positive sign is that Boomtown (the industry body that represents local regional media) has seen growth in its share of national advertiser expenditure which is encouraging, but there is still a long way to go.
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