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Olympics, Census Provide Tough Hurdle in August But Market Remains Flat (ex Govt) this CYTD

September 18th 2017

AUSTRALIA’S media Agency market has started experienced another tough month in August but this time the softer demand was primarily due to the Rio Olympics and Census providing abnormal bookings last year, resulting in demand for August 2017 so far being back 12.1% to $526.5 million.

But when late Digital bookings are added at month end the market is likely to finish down at the single digit level.

Nonetheless SMI’s August 2017 results are so far showing lower bookings for every major media.

Television was the most affected by last year’s Olympics broadcast and as a result is now down 6.8% before Digital bookings are included; Outdoor is back 5.8% and Radio (ex Digital) bookings are 13.7% lower, at least in part due to an extra week commencing period falling in August last year abnormally inflating August 2016 ad spend.

SMI AU/NZ Managing Director Jane Schulze said the market continues to struggle against the high hurdles created by one-off events last year.

“The 2017 year was always going to be tough given the large significant events occurring last year such as the Federal election, Rio Olympics and Census”, she said.

“As a result we’ve only had two months in 2017 in which we’ve reported year-on-year growth (January and March) but we’re hoping a period of more normal comparative periods is now ahead of us.”

In terms of the August SMI results, within the Category data the strongest growth seen in August was in the Restaurants Category (mostly fast food restaurants) where total Agency ad spend grew for the second consecutive month, this time lifting 5.3% with money again coming out of Digital and being reinvested in Television and Outdoor media.

But the two largest categories of Automotive Brand and Retail again reported lower spend, down 3.6% and 11.9% respectively year-on-year.

For more detail contact Jane Schulze on 0401 704 348

SMI Team

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