Last year, major automotive advertisers held back on spending during the first eight months but, in the final quarter of the year, OEMs unleashed their expense accounts with small-car advertising budgets rocketing up 96 per cent.
The data, which is based on bookings made through advertising agencies, shows car advertising spending in the January-to-August period last year was down 5.4 per cent on previous years and then, at the end of the year, soared dramatically.
The same has happened in the January-to-August period this year and observers are now waiting to see if there is a surge in small-car spending in the remainder of this year.
Advertising monitoring company, The Standard Media Index (SMI), reported that the first eight months of this year also saw modest spending in the small-car market and suggests that it may be poised to increase in the run through to the end of this year. Total spend in all advertising sectors in the eight months is about $4.3 billion.
Meanwhile, advertising group Dentsu Aegis Network (DAN) issued its global Ad Spend Forecasts that predicts an increase in advertising for 2018.
For Australia it sees growth driven by key events including the Ashes cricket, Winter Olympics, and state elections in South Australia, Victoria, Queensland and Tasmania.
It also said that traditional media channels will see continued revenue declines in 2017 and 2018.
“TV spend is forecast to decline by 2.6 per cent in 2017 and 2.4 per cent in 2018,” the DAN forecast said.
“Furthermore, reflecting the continued disruption by digital technology of the print media industry, newspaper ad spend is forecast to decline by 11.9 per cent in 2017 and 8.9 per cent in 2018.
“In 2017 and 2018, magazine ad spend is predicted to fall by 18.7 per cent and 10.7 per cent respectively.”
By Neil Dowling
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