Regional media needs a Government advertising boost

Declining government ad spend and high exposure to SME clients threaten the viability of regional media and localism.

David Kennedy · Venture Insights6 July 2023Period: FY244 min read

Last updated 8 June 2026

5.0%↓

Predicted drop in total advertising expenditure (FY24)

-22.2%↓

Headline change in Newspaper ad spend (May 2023)

Locked

+2more stats

Companies covered:Seven WestPrimeNineWINSMICountry Press Australia

Abstract

This report analyses the structural pressures facing regional media in Australia, forecasting a 5.0% drop in total advertising expenditure for FY24. Regional outlets are disproportionately affected due to their reliance on small and medium business clients and a significant contraction in government advertising. The brief argues for urgent reform in government ad spend allocation, noting that while 28% of the population lives in regional areas, current spending targets often fall short of this demographic representation.

Key Takeaways

Total advertising expenditure is forecast to decline by 5.0% in FY24, disproportionately impacting regional media.
Regional media faces higher risks than metropolitan media due to its reliance on SME clients who cut spending during downturns.
May 2023 data shows newspaper ad spend fell 22.2% and television fell 15.3%, largely due to reduced government spending.

stakeholder implications · PDF download

Frequently Asked Questions

Total advertising expenditure is forecast to contract by 5.0% in FY24. Recent May 2023 data confirms this downward trend, with newspaper ad spend dropping 22.2% and television spend falling 15.3%.

Regional media faces higher structural risk due to its disproportionate reliance on SME clients who aggressively cut marketing budgets during economic volatility. This vulnerability is compounded by the fact that while 28% of Australians live in regional areas, federal advertising spend lacks a specific target to match this demographic footprint.

A Parliamentary Inquiry has recommended a mandatory 20% floor for Federal advertising expenditure to be directed toward regional and rural news. This aligns with the Victorian government's current performance, which delivers over 20% of its ad spend to regional areas despite a lower 15% formal target.

Regional media needs a Government advertising boost

Abstract

Key Takeaways

Frequently Asked Questions

Unlock the full report

Free

Lite

Team