Annual Ad Spend Slump for Oz

Australia's overall 2001 advertising economy has been depressed by a decline in major category advertising post September 11. This is according to the latest annual advertising expenditure figures released by ACNielsen Media International.

The figures show that the country's total ad spend for 2001 was down 11 percent compared to 2000, a result compounded by an 18.5 percent decline in spending in the fourth quarter of the year, compared to the same period the previous year. All media experienced negative growth in 2001 except for newspapers, which remained flat, and the less expensive mediums of outdoor and cinema advertising which both saw modest increases.

The retail sector topped the ranks for ad spend by product category, although down 11 percent on the previous year. Only two categories, motor vehicles and real estate, maintained spending comparable to 2000, with both sectors reaping the benefits of Government GST tax benefits and housing grants.

Helen Overmyer, managing director, ACNielsen Media International Australia, noted 'In Q4 last year, all media, felt the impact of industry and consumer unease as the world reeled from the September 11 attacks, and events closer to home took their toll, including several large corporation collapses that led to significant job losses and advertising budget cuts. The communications sector was most affected in 2001, with advertising spend down 38 percent over the previous year, clearly impacted by significant cutbacks by Telstra, Cable & Wireless and the collapse of One.Tel. In spite of this, Telstra MobileNet and Orange Mobile managed to secure first and second places for the highest spending products in 2001.'

Overmyer concluded 'It was also a big spending year for the Commonwealth government, with all departments' spending combined in our report for the first time. They topped the ranking as the Top Advertiser in 2001, spending more than double the second ranked, Coles Myer Group. Overall though, the Top 50 Advertisers' list reflected a year of change and uncertainty, with many shifts and disappearances from the rankings, even among the Top 10.'

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.