TOYOTA Australia is reviewing its $70 million media agency account, currently held by independent The Media Store, in the wake of falling advertising spending by the retail sector.

AdNews reports that the account review comes as the automotive sector – said to be the largest advertising category in Australia – showed weak December figures.

The latest Standard Media Index (SMI) data was down in December despite the Christmas period.

Media agency advertising bookings fell 34 per cent for the automotive sector, according to early December data.

This compared with: the retail sector, down 31 per cent; consumer electronics, down 49 per cent; financials (excluding domestic banks), down 51 per cent; and travel, which was down 29 per cent.

AdNews reported that SMI analysts said the Australian market was also affected by softer ad spend by automotive manufacturers because of the lower car sales.

Nielsen said the total automotive category ad spend is around $650 million a year. Toyota, including Lexus, had a reported $69 million in estimated media spend in the year to November 2019.

Toyota Australia CMO Wayne Gabriel told AdNews: “It is not uncommon for Toyota Australia to review its agency relationships from time to time as part of best practice processes. All reviews are managed between involved stakeholders as appropriate.”

The Media Store CEO Stephen Leeds said: “Throughout our 20-plus-year relationship with Toyota we regularly review the business, its structures and processes.”

By Neil Dowling