Spend flattening but market showing resilience.

First published in Adnews - Advertising spend flattening but the Australian market showing resilience. 3 August 2022.

The advertising market in Australia has slowed but is showing resilience in the face of economic headwinds, according to industry players.

The market is now ahead of pre COVID 2019. Standard Media Index (SMI) numbers show a record for the 2021-22 financial year, with total agency billings up 14.5% or $1.1 billion to $8.8 billion.

Australia is proving better at weathering the economic squalls than the US (-3 in June) or UK (-13%).

However, June in Australia -- a post election month which should have seen a jump of mainstream advertisers returning -- just had its nose above water at a positive 0.4%.

Media agencies say some clients are watching and waiting as interest rates rise on the back of surging inflation.

But travel ad spend is returning hard and, among media, cinema and outdoor media are continuing a strong recovery.

Angela Feruglio, director, Seed: "It is great to see advertisers support the influx of major blockbusters over recent months; particularly targeting the youth segments. Cinema admissions are up 54% for the first half of the year vs. 2021. The June Top Gun: Maverick release attracted over 4 million admissions and landed at the #5 film of all time."