Question 1

What is the long-term growth outlook for the Australian advertising sector?

Accepted Answer

The market is on track to reach $20.375 billion by FY25, reflecting a 5.7% CAGR from FY20. While the industry experienced a sharp 16.3% recovery in FY21, growth will moderate through CY23 as macroeconomic conditions and GDP growth decelerate.

Question 2

How quickly is the shift from traditional to digital channels occurring?

Accepted Answer

Digital channels will command 70.7% of total advertising expenditure by 2025, driven by a 9.5% CAGR. This shift comes at the expense of legacy formats, with print advertising projected to decline at a -17.9% CAGR through FY25.

Question 3

Which specific digital formats are driving the most value?

Accepted Answer

Digital video is the primary growth engine with a forecast 19.4% CAGR as audiences migrate to OTT and mobile platforms. Mobile dominance is accelerating, with the format expected to account for 57% of all digital advertising spend by FY25.

Question 4

Can traditional broadcasters and outdoor operators recover their lost revenue?

Accepted Answer

Broadcasters are successfully offsetting a -1.8% linear TV decline through BVOD, which is forecast to grow at a 23.2% CAGR. Outdoor media is also rebounding with a 7.4% CAGR, supported by a transition to digital assets which will represent 61% of total outdoor revenue by FY25.

Australian Advertising Market Outlook - March 2022

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