Credit: Matheus Frade via Unsplash
The federal budget, positioned for the coming national election, had little to help the advertising and media sector other than a potential lift in consumer confidence.
The pitch was pure voter joy, aimed at the hip pocket nerve, a cost-of-living damper, with help for power bills, tax cuts and a freeze on draught beer.
“There is no golden egg for us,” said media analyst Steve Allen, director of strategy and research at Pearman Media. “Unquestionably, this is an election budget writ large.
“Overall this is good, but certainly not great for marketing and advertising.”
The only mention of media in the budget papers was $10 million next financial year to support independent multicultural media outlets to fast track their transition to sustainable news media.
“It was disappointing to see a lack of investment in the media and digital economy, particularly at a time when such support is crucial for Australia to remain competitive in a global marketplace increasingly shaped by artificial intelligence,” said Gai Le Roy, CEO of IAB Australia.
“While there were a few announcements with potential minor impacts on the advertising industry—including an equity investment in the NBN to improve access for those with no or slow internet, $60 million in funding to enhance digital and cybersecurity capabilities for small and medium businesses, and a ‘Buy Australia’ campaign with some allocated advertising spend to support local businesses—the overall effect is likely to be limited.
“On a more positive note, the $5 billion commitment to fund a universal early childhood education and care system is encouraging. This kind of investment is key to boosting female workforce participation and addressing broader economic challenges by removing barriers for women and families.
“Increased investment in the OAIC (Office of the Australian Information Commissioner) will help provide resources for an increase in privacy compliance enforcement that has previously been flagged by privacy commissioner Carly Kind.”
Bench Media’s co-founder and COO, Shai Luft, said nothing says “re-elect us” like cash in the pocket.
“This budget is all about votes, delivering cost-of-living relief, a $150 energy rebate for every household, and $17 billion in tax cuts for all Australians,” said Luft.
“But there’s a catch. The tax cuts don’t kick in for 15 months, giving the Reserve Bank no reason to hike rates before the election.
“The big winners? Healthcare gets billions for Medicare and PBS subsidies, education sees HECS debt relief, and housing receives more funding for social and affordable homes. And a surprising fourth, beer. The government is freezing draught beer tax hikes and offering relief to brewers, distillers, and winemakers.
“It’s a textbook election budget, designed to please. But for the marketing and advertising industry, battling low consumer confidence and cautious business spending, there’s little immediate upside. That said, if you’re in healthcare, education, or energy, or work with clients in those sectors, you might just see a boost.”
Adrian Roeling, chief operating officer at Hatched, noted that Labor has to win the election for the budget announcements to matter.
“Many of the announcements – including the tax cuts - are phased and we don’t expect much immediate impact at all on the advertising industry – both for consumers and advertisers,” he said.
“From both a societal and advertising industry workforce perspective, it was terrific to see more support for carers, childcare and women’s health.
“The announcement that could have the most significant implications on our industry – a surprising and really interesting announcement – was the proposed changes to non-compete clauses…given we are an industry driven by people – our agency people’s IP and relationships, both with clients and colleagues – this change could have a significant impact and will require careful consideration from all parties to ensure they focus on retaining the best talent and protect their IP.”
The dominant #1 was Keep day to day living pressures down.
Second, and near half of the #1 score, was Improving Health Services, followed by (and rising) Reduce crime and maintaining law and order.
Managing the economy was a close #5, with Keeping Interest rates down next.
Steve Allen at Pearman said the February RBA cash rate cut, to an extent, took care of #6 concern.
“Last night's federal budget, and the multitude of spending announcements and initiatives beforehand, certainly addressed the rest,” said Allen.
“However, the overall (election) budget is very optimistic, at least in years to come, hence the phenomenal spending which outside of COVID was at a 40 year high.
“The clear dangers and risks have been largely ignored, particularly the global fissures.
“Just looking at the comparison between 2023/24 (A$15.8b surplus)and 2024/25 (A$27.6b deficit), a salient A$43.4b turnaround in one year, this fiscal year we are just edging toward finishing.
“Deficits mean we have to borrow to fill the gap, like any household or individual.
“We think this budget will place additional pressure on the RBA, and will delay further Interest rate cuts (but then this will be (no doubt) after the election.
“Putting aside considerable risks and optimism inherent in the present government’s budget policies, this is a budget which should keep the economy ticking along (this is of course its design base).
“Thus more of the same as we have experienced for the past 12 -15 months.”
David Einstein, director, Orange Line, said the budget gave the essentials: a cost-of-living Band-Aid, a beer tax freeze, and$3.4 million to keep two pandas in Adelaide.
“While not quite a marketing stimulus package, it’s a mood shift we’ll take,” Einstein said.
“With energy rebates and rent relief putting a little more jingle in consumers’ pockets, brands in retail, travel, and FMCG may cautiously re-ignite their ad spend.
“The beer tax freeze won’t move markets, but it might move blokes—and that’s good news for advertisers chasing good vibes.
“Government ad budgets remain tight, so don’t bank on a boom just yet. But with consumer sentiment set to improve, now’s the time for brands to get loud—smartly.
“For agencies, the message is clear: be performance-driven, be efficient, and maybe pitch the pandas for a TikTok collab.
“This budget’s no bonanza, but it’s got just enough buzz to keep the industry from hibernating.”
Tim Riches, group strategy director & principal at Principals, said every budget is about Brand Australia. And this year $20M is earmarked for a Buy Australian campaign.
“Presumably developed and placed by lean and agile Australian-owned agencies rather than overhead-heavy, tax-savvy multinationals, given the intent is to encourage vibrant and productive local industry… apparently those multinationals can expect better funded scrutiny from the ATO too,” eh said.
“So it’s a good time to talk to clients about how to tap into the imminent tsunami of buy local sentiment. And to embrace the brand guidelines of an '80s design classic in the Made in Australia triangaroo. Best catch up on ACCC country of origin guidelines and the Made in Australia Council Code of Practice to avoid legal complications. And top tip for designers: there’s a mono version for those struggling with the green and yellow.
“With extra spending on security and foreign aid for strategically specific Pacific Islands, projecting soft power is the business-to-government (B2G) Brand Australia investment. Plus local nation-building activations via Australia Day Council community events funding. Best practice inside-out brand building on-show right there.
“The government has proposed banning non-compete clauses for people earning up to $175,000 as a way of making it easier for people to switch jobs for a higher salary.
“We’re a sector that definitely expects this level of mid-senior employees to cultivate highly valued client relationships – so it’s a reminder for all agency leaders that non-competes (retainer contracts) are not the best answers to key client retention. I suspect this news may not be welcomed in certain holding companies with a long-standing love of lawyer's letters to ex-employees.
“I believe this is the first year social media ‘fin-fluencers’ have been included in the grand tradition of the budget lock-up.
“So it’s good to see the next generation of political media advisers getting the next generation of media talent invited to the budget party in an attempt to build some pre-election engagement with the audience who have had their student debt reduced, job-hopping prospects enhanced and internet connection sped up.
“You might say that hand-picking individual influencers who have something to gain from getting selected exacerbates the decline of journalism as a profession and a business model – but that would be cynical and old-fashioned, no doubt.”
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