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Media - Sector Updates

Peter O'Leary 26 Dec 2017 • 6 mins read


Television continues to be the most influential of all media, despite no growth. TV remains the first choice for most people, accounting for 86.6% of all viewing (in Australia). There is ongoing polarisation around programming content, with news, sport and the reality genre enjoying substantial audiences. The impact of technology and personal devices (like Tablets and Smartphones) is enabling time-shift viewing - around 3% of viewing is shifted between 8 and 28 days from the original broadcast.

The TV set is no longer just for TV. In addition to catch-up viewing the set is also used for gaming, internet browsing, streaming music, watching content from YouTube, FaceBook and Vimeo (to mention only a few). The average Australian home now has 6.4 connected screens.

Key points:

  • TV is solid and will remain so
  • It is the fastest way to reach a large audience quickly
  • While airtime is a high dollar cost, TV can be very cost effective
  • Fit with program content/format is more important than ever

Subscription TV (STV) and Video on Demand (SVOD)

Watching live television has the largest share of weekly average viewing. Time spent on streamed and catch up services continues to grow.

SVOD is transforming the way audiences consume video. It’s convenient – watch what, where, when I prefer, and on my chosen device. Binge watching is driving viewership, although there is still limited content selection.

This is a competitive space. Global brands like Netflix are dominating share.


Radio continues to perform. Share of ad spend has grown strongly over the past five years with the retail sector pushing growth. There is new and emerging competition from the music streaming services but it’s not yet significant. Pandora & Spotify, even with explosive growth, have reached only 2.3% of revenues.

The emerging trend is towards integration across multiple mediums. An example is The Voice TV, who have launched a radio show with exclusive content. Radio’s success is due to on-air formats not changing, while also integrating digital, streaming and podcasts. This integration is delivering reach and strength.

Out of Home

The Out of Home sector has had the strongest growth in the last decade of all advertising mediums. It continues to thrive, principally through the diversification of digital installations.

This diversity is creating opportunities, due in part to:

  • Affordable to smaller campaigns
  • Short lead times
  • Time targeting, shorter periods, more cost efficiency

Out of Home installations are appearing in more locations, including more in-store and in-office locations.

We expect to add programmatic buying options and new competition to come from Google soon.

Print - Newspapers and Magazines

Everything in Print is a challenge. The steady decline continues:

  • Newspaper circulations are down by more than 50% from the peak (2008)
    • population growth hasn’t slowed the decline
  • Consumer magazine advertising revenues fell by 18% compared to 2015
    • Digital revenue for content sites up by just 0.4%

It is a tough market environment. Audiences are seemingly making decisions on where to find content, and the conventional media publishers need to continue evolving.

In 2017 all major magazine publishers in Australia withdrew from the circulation audit, meaning that they no longer release data on how many magazines are printed and circulated. There are now less than 20 magazines remaining in the Audited Media Association of Australia’s (AMAA) magazine circulation audit.

The reasons given: ”Magazine brands today are consumed across many platforms including print, digital, social and experiential. The audience that our brands talk to is growing significantly and to reflect this, the metrics we use must give a more detailed audience picture.” - Audience engagement is a sign of success.

Key take outs:

  • The market is changing but is not over yet.
    • Sunday newspapers have remained strong
    • Readership of weekday newspapers is consistent, although falling.
      • They do offer an uncluttered environment (if that audience is right)
    • Selected magazines, particularly women's, are performing
      • readers are still buying magazines, just not as many as they once did
      • we expect further consolidation

The Digital World

Digital is a broad term that covers everything online - from Google to FaceBook, to Social and News - to then everything else.

The topline stats are all sensational. In the past year:

  • Digital continues to increase and strengthen, up by 14% overall.
  • Google was the biggest digital player, growing by 13%
  • Facebook increased by 17%.
  • LinkedIn increased by 8.4% to $12.6m.
  • Online video lifted by 11% to just over $100m (in Australia).

Programmatic buying is on the rise.

  • 63% of Australia’s digital advertising inventory across all devices is now via programmatic or ad network services
  • Campaigns placed directly with the media accounted for just 37% of all ad impressions in 2016.

65.8% of the Australian population is active monthly on Facebook. 1 in 6 Australians is a Daily User on Snapchat. Every stat is amazingly good. (Yet not all that glitters is gold).

Follow this LINK for more on media buying and the AMBA 2020 Media system.