Australian Advertising Market Outlook – June 2023

GDP slowdown and high interest rates weigh on ad spending, with digital and outdoor segments leading a slow recovery.

David Kennedy · Venture Insights26 June 2023Period: June 20238 min read

Last updated 8 June 2026

1.4%↑

Total AdEx Market CAGR (FY22-FY27F)

-5.0%↓

Forecast Total Advertising Expenditure Growth (FY24F)

Locked

+2more stats

Companies covered:Reserve Bank of AustraliaFacebookAmazonGoogleNetflixFoxtelBingeKayo

Abstract

This report provides a comprehensive forecast of the Australian advertising market through FY27, analyzing the impact of macroeconomic headwinds and shifting consumer behaviors. While total advertising expenditure reached $20.8 billion in FY22, a GDP slowdown is expected to trigger a 5.0% market contraction in FY24. The analysis details segment-specific outlooks, highlighting the continued dominance of digital advertising, the rapid growth of Broadcaster Video on Demand (BVOD), and the structural decline of traditional print and linear television formats.

Key Takeaways

Total Australian advertising expenditure is forecast to reach $22.2 billion by FY27, representing a modest 1.4% CAGR from FY22.
A significant market contraction of 5.0% is forecast for FY24 as GDP slowdown and high interest rates impact consumer spending.
Outdoor advertising is the standout performer, projected to grow at an 8.6% CAGR, driven by digitisation and improved audience targeting.

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Frequently Asked Questions

The market is bracing for a 5.0% contraction in FY24 as rising interest rates and a GDP slowdown weigh on consumer activity. While total expenditure will recover to $22.2 billion by FY27, the five-year CAGR remains constrained at a modest 1.4%.

Broadcaster Video on Demand (BVOD) is the primary growth engine with a forecast 18.7% CAGR through FY27. Outdoor advertising also shows significant resilience, projected to grow at an 8.6% CAGR as digitisation efforts scale.

Structural decline is accelerating, with linear free-to-air television revenue forecast to contract at a -7.0% CAGR through FY27. Physical print media faces a similar trajectory with a projected -2.4% CAGR over the same period.

Digital advertising (excluding BVOD) will reach $15.0 billion by FY27, maintaining its market dominance via a 2.2% CAGR. Within this segment, display advertising is expected to account for 41.7% of total digital spend.

Australian Advertising Market Outlook – June 2023

Abstract

Key Takeaways

Frequently Asked Questions

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