Some retailers appear to be holding back on advertising in the important December quarter, according to early, not yet made public, media agency booking data.
November SMI (Standard Media Index) numbers, ex-digital, show retail speed down more than 10%.
The fall is due to a pull back by supermarkets and online retailers.
Consumer electronics ad spend was also down.
Retailers and consumer goods is the biggest combined category in advertising spend.
Analysts at Morgan Stanley estimate the category accounts for about 30% total ad market share each year.
Based on SMI data in 2022, they spent around $3 billion on advertising, compared to total brand advertising of $10 billion.
The latest numbers represent a dip of about $15 million and follow forecasts of bumper Black Friday sales followed by a slow down into the Christmas period as consumers keep tighter control of their household budgets.
The perception is that consumers, their COVID restrictions savings depleted, are suffering from rising prices in an uncertain economic outlook.
The early SMI number also show ad spend at metro free-to-air television with a more than 16% decline for November.
This fits with recent trading updates from the two ASX-listed television networks, Nine Entertainment and Seven West Media.
Nine, at its AGM last month, told shareholders the metro free-to-air television market remains challenging.
September quarter revenue was down about 12%.
"While September showed some improvement on the rate of decline in July and August, Nine has seen no discernible improvement into the December quarter," says CEO Mike Sneesby.
Seven West Media also reported continuing challenging advertising conditions.
"For the second quarter, advertising market conditions are similar to the first quarter, although our forward bookings for October-December indicate a slight moderation in the market decline," CEO James Warburton told the AGM.
Both networks are focusing on costs.
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