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2023 Advertising Spend & What This Means for 2024

Twitter became X. An unlikely double feature known as “Barbenheimer” hit the movie screens… and Australians’ love of soccer soared as the Matildas united a nation to finish 4th at the 2023 FIFA Women’s World Cup. It was an eventful year to say the least, but what was happening in Australian advertising specifically

Australian Advertising Spend: January - December 2023 (SMI)

Advertising spend was back -2.7% overall, but still reported a healthy $8.7B in total ad spend during January to December 2023.

Where’s The Strongest Growth?

Across media channels, Out of Home saw the largest growth, up +15% YOY, with large format, retail, sporting, and programmatic formats driving this surge. Strong growth was also seen within digital channels (+3.5%), led by increases within both digital audio and video in line with consumer demand.

TV Advertising

Linear TV saw the largest drop in revenue, -13.9% YOY which was noted across all four commercial networks, with movement towards Broadcast Video on Demand (BVOD) platforms presenting growth for the TV networks.

Digital Advertising

There continues to be a consistent trend towards digital formats across all media channels, with advertising spend representative of this trajectory in line with consumer shift and media preference.

Retail Advertising

Spend within retail specifically was relatively flat (-0.6%), however still the most invested category over the year.

What does 2023’s advertising spend mean for clients and businesses?

With uncertainty around rising living costs, consumer confidence remains low (ANZ Roy Morgan Australian Consumer Confidence Mar 2024), led by weak retail sales which in turn affects trade in market. This is however good news for advertisers, with a key opportunity of the softening marketing being the ability to trade some budget short term across H1 to secure advantageous discount positions. This is likely to be seen most across mediums that saw a reduction in spend across 2023 (TV, Radio, Print).  We suspect this will continue into H2 too, albeit maybe not as soft pending media speculation of interest rate reductions which may buoy the market slightly. 

Looking Ahead: Opportunistic in 2024

Consistency in advertising is particularly key in 2024 for brands to both hold and increase share of voice, taking advantage where competitors may reduce or drop expenditure. Showcasing value within offers is also vital as Australians watch their spending more closely, with decisions prioritised based on perceived value. This must be front and centre of brand’s messaging and communication in the market.

As consumers align with digital formats within traditional media, so must brands to ensure capture of these key consumers. A lot of 2024 remains unknown, but we do know there are some great advertising opportunities that present for our clients to win valuable lead in their category. 

Still planning your advertising activities for 2024? Our dedicated, expert team can assist in strategising, planning and implementing your advertising across all media.


SMI Data, Jan-Dec 2023
ANZ Roy Morgan Australian Consumer Confidence Media Release, 5th March 2024

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