Note incorrect inflation number for 09 in article, should be 1%...

Note incorrect inflation number for 09 in article, should be 1%


Local advertising expecting flat growth for the year

* Font Size: Decrease Increase
* Print Page: Print

Lara Sinclair | January 28, 2009
Article from: The Australian

THE $12 billion advertising industry will grow 1.7 per cent in Australia this year but price inflation of 5.2 per cent will see real spending fall 3.5 per cent, according to a report from Aegis Media.

Advertising can expect flat growth of 0-2 per cent this year, but once inflation is taken into account, spending will fall by 3-5 per cent, the media buying group predicts.

Only the internet will see real increases, up 9.7 per cent, although price inflation will reduce that figure to 5.7 per cent.

The year appears to have got off to a poor start in some media, with insiders tipping television spending will be down by as much as 10 per cent in the March quarter compared with the same period last year.

Official audited television revenue share numbers due out this week are expected to show the market in negative territory for the six months to December last year -- down 3 per cent, according to one estimate.

Seven sales chief James Warburton did not contradict the numbers.

"Without question, certainly the first quarter of this year will be a challenging time and our only option is go get out there and be as innovative as we can for clients," Mr Warburton said yesterday.

News Limited sales director Tony Kendall said retail display advertising held the print market up in December and January, but sales in the monthly magazine market were "patchy" in February but picking up in March.

Aegis is predicting Australia will be one of just four Asia- Pacific markets to see even nominal growth this year.


http://www.theaustralian.news.com.au/business/story/0,28124,24971959-36418,00.html