Digital, outdoor and cinema drive growth in Australia’s ad market despite flat 2024

Australia’s advertising market remained flat in 2024, with total agency bookings dipping just 0.9% for the year. However, key media sectors - digital, outdoor and cinema - defied the broader trend, with record market share and strong growth, according to new data from Guideline SMI.

Digital advertising saw a 4.4% increase in 2024, with video-based campaigns overtaking display advertising for the first time. Ad spend on video sites and streaming services surged 17.8% year-on-year, while digital radio also enjoyed a 17.4% boost.

“The growth in ad spend to video/streaming sites delivered another consequential metric as our digital data shows video-based campaigns overtook display as the largest ad format for the first time," Jane Ractliffe, APAC managing director of Guideline SMI, said.

Ractliffe said retailers – and in particular chemists – drove a lot of the growth in video-based ad spend across all digital sectors, along with food, produce, dairy, toiletries and cosmetics advertisers. The skin care subcategory delivered most of the gains within the toiletries market.

Social media also saw strong momentum, rising 9.4% year-on-year, cementing its place as one of the strongest-performing digital channels.

Outdoor advertising hit record market share on the back of a 4.9% boost, pushing its total market share to a record 15.4%. Large brand campaigns have driven demand, particularly in the poster sector, where spending from banking (+18.4%) and insurance brands (+41.4%) saw significant increases.

Government spending surges

A 67.5% surge in government advertising in December signalled what is expected to be a strong January quarter, as political ad spend ramps up ahead of the anticipated federal election in May. Across the full year, government ad spend grew 18.2%, making it Australia’s fifth-largest advertising category.

Ractliffe added the rise in government ad bookings is shaping up as a key trend in the January quarter, ahead of an expected federal election in May this year.

Sector winners and losers in 2024

While digital and outdoor posted gains, linear TV advertising fell 9.5% for the year. However, regional TV fared better, declining only 3.2%. A similar pattern emerged in radio, with metropolitan radio ad spend down 3.4%, while regional radio remained almost flat (-0.3%).

Cinema was the standout performer in the final quarter, growing 6.1%, and leading all sectors in the first six months of the financial year with 10.3% growth.

Looking ahead, analysts expect continued momentum in digital and outdoor, while election-driven government spending could provide a boost to the overall market in early 2025.