MEDIA UPDATE OF THE WEEK
Australia’s media agency market has emerged stronger and more confident from the COVID-19 pandemic, with SMI’s end of financial year ad spend revealing record levels of ad spend for the month of June, the June quarter, and the 2021/22 financial year.
The total ad spend for June increased by 0.4% from last year’s record level to a new record level of $775 million, which in turn fed into a 7.1% increase in June quarter ad spend to a record $2.26 billion ($150 million on Q2 2021) and calendar year growth of 10.6% to a record $4.2 billion. Due to this growth, the 2021/22 financial year saw exceptional results, with total Agency billings rising by 14.5%, or $1.1 billion, over the prior financial year to $8.8 billion.
SMI ANZ managing director, Jane Ratcliffe stated “The latest SMI financial year ad spend detail confirms the Australian market has moved well beyond the COVID period, with the total financial year ad spend now 6.4% or $528 million larger than in the pre-COVID 2018/19 period.”
Digital media, out of the major media outlets, reported the most growth in June and for the entire fiscal year (10.9% and 25%). The amount spent on Video has increased by 7.7%, Audio ad spend up by 11.2%, News Media ad spend increasing by 3.3%, Magazine revenue up by 5.7%, and Cinema ad spend more than doubling to $59.3 million.
Source: Mumbrella & SMI: https://mumbrella.com.au/australian-ad-spend-reaches-record-levels-for-month-of-june-2022-smi-749324
ANZ-Roy Morgan Consumer Confidence has risen for the third consecutive week, up 1.7pts to 84.1 this week. Despite these gains, Consumer Confidence is still a significant 17.7pts below the 101.8 of the 2021 31 July/1 August week, and currently 8.2pts below the 2022 weekly average of 92.3. Across the mainland, Consumer Confidence was up significantly in Queensland and South Australia, but down slightly in NSW, Victoria and WA.
This week’s increase is due to more positive views on personal finances and the Australian economy’s performance over the next year. According to David Plank, ANZ Head of Economics, “...Consumer confidence rose 2.1% last week, despite news that headline inflation exceeded 6% in the year to June. The sharp fall in petrol prices over the past three weeks may have been more important for sentiment. The drop likely explains why household inflation expectations fell 0.5ppt to 5.5%.”
When it comes to buying intentions, only 23% (down 2ppts) of Australians, say now is a ‘good time to buy’ major household items while 45% (down 1ppt), say now is a ‘bad time to buy’. David Plank, ANZ Head of Economics, says “The only confidence subindex that decreased was ‘good time to buy a major household item’ – ongoing weakness in the housing market and pressure on household budgets being likely reasons. Despite the gain in the past three weeks, sentiment remains at a very low level and vulnerable to more tightening from the RBA."
TV saw a massive Sunday night with Network Seven, Nine and Ten all launching their tentpole programming. Out of the three, the Block came out on top with 867k Overnight metro viewers. However, it was ranked #2 against Total People as Seven News took out the top spot with 982k metro viewers.
On Network Ten the Hunted Finale aired on Tuesday 2nd August with 602k metro viewers tuning into the Extraction, coming in as the #7 top spot for Tuesday night. Fugitives Rob and Stathi managed to escape from the Hunters for 21 days and each took home half of the $100k in prize money. The new program launched three weeks ago to an audience of 619k and saw 711k metro viewers tune in at its highlight.
Taking over on Ten is the Masked Singer that launched yesterday and saw 598k metro viewers tuning in for the reveal of Ryan Moloney as the knight. The judges this year are Chrissie Swan, Abbie Chatfield, Mel B and Dave Hughes. Mystery celebs will be masked up in Tim Chappel’s creations, there will be Popcorn, Rooster and Thong costumes.
Network Nine’s Beauty and the Geek wrapped up on Wednesday 3rd August and saw a metro audience of 537k for the Winner Announcement, down -18% compared to 2021. Moving on from this Nine launched season 18 of the Block last night (7th August). Themed ‘Tree Change’, the builders are in Gisborne, Victoria this season to create luxury rural escapes. The launch last night was the top show against P25-54 and saw an +16% increase in metro audience YOY.
Last week that was saw the second week of the Commonwealth Games on Network Seven. Highlights included the gold rush in swimming on Day 5 and athletics, the Australian Cricket and Netball women taking home gold on Day 10 securing the 1000th gold medal in history of the CGs. Australia is leading the medal tally with 66 gold and a total of 174 medals and the games are finishing up today. The Commonwealth Games finish today in Birmingham with the closing ceremony airing Australia early Tuesday 9th August. My Kitchen Rules is taking over as the tentpole on Seven and returned to our screens last night to 503k metro viewers. New judge Nigella Lawson pulled in the viewers and fans rushed to social media to give her their approval. Lawson is said to be featuring only half of the season and given the fan reaction, it will be interesting to see if MKR can keep up the ratings for the second half with judge Matt Preston replacing her.
Across the week (Monday-Sunday) Network Seven won at 44.5% commercial share, Network Nine coming in second with 30.5%, Network Ten at 17.2% and SBS at 7.7%.
Source: eTam Top 50 Programming and Commercial Share, Overnight Data, Metro + Subscription Panel, 1.08-07.08.2022.
In the week up to the 7th of August there were 1,078.8 million minutes of BVOD content consumed, reaching 7.3M million people nationally.
Coming in hot into the top 10 Programs was Love Island UK on 9Now, with season 8 episode 56 ranked #1 and the finale episode 57 ranked #2. Around 30% of the audience for Love Island UK fell into W25-39. Following behind was Hunted on 10Play which took out spots three to five with 20% of audience W25-39 and 20% W40-54, a little bit older.
It will be interesting to see which of the newly launched programs will come out on top on BVOD which is characterised by a female skewed audience.
Source: OzTam, Video Player Measurement Report 7 Day Rolling – 07/08/2022.