MEDIA UPDATE OF THE WEEK
Marketing intelligence platform Pathmatics has revealed the top ten Australian brands when it comes to digital ad spend in H1 2022.
Fear of the Omicron COVID-19 new variant has clearly influenced key categories which were reflected – Food delivery service Menulog took top spot with estimated $23M, which Foxtel’s Binge and Kayo came in second at a combined $21.45M. Shopify was the 3rd highest spender throughout the period, and financial services generally were the top category spending an estimated total of $137M in H1. Spend peaked in May and June when the RBA interest rates rose.
“With economic pressures mounting and many Aussie consumers feeling the pinch on their purse strings, we saw the financial services category come out top for digital ad spend during the first half of the year. Spikes in ad spend can be seen in May and June as interest rate rises were announced. Ad messaging centred around financial support for consumers who may be struggling to navigate the aftershocks of these rake hikes. As we buckle in for the second half of the year, Pathmatics will continue to track key events and corresponding ad trends, lifting the lid on which industries and brands are spending big.”
Image source: Pathmatics
ANZ-Roy Morgan Consumer Confidence was virtually unchanged this week at 81.8 (up 0.2pts) but is a large 22.5pts below the same week a year ago, July 17/18, 2021 (104.3). In addition, Consumer Confidence is now 11.1pts below the 2022 weekly average of 93.4.
PWC have released the 21st edition of its annual Entertainment & Media (E&FM) Outlook. The sector’s recovery from the pandemic is forecast to continue for the next five years, reaching $79.9 billion by 2026 (compound interest rate of 4.1%).
PwC highlights defining factors for growth through 2021 and 2022:
The subscription economy - Australians now manage 6.5 premium subscriptions from a selection of more than 100 available across video-on-demand, audio, news and lifestyle content, gaming and other sources of entertainment.
Social gaming - In 2017, Australian gaming made up 21% of consumer spending (excluding access). In 2021, this stood at 26% and will continue to gain share.
By 2026, gaming will account for close to 30% of consumer spending (excluding access) as the niche becomes more mainstream. In-game advertising reached $1.3 billion in 2021 growing 8.8%.
Reconverging Channels - Media businesses are increasingly representing their media as total TV, audio or publishing, with media buyers slowly becoming able to deliver more seamlessly across offline and online environments.
Blurring of ads and media - The rapid rise of e-commerce, spurred by the pandemic, has further raised the importance of tying advertising investment to purchases. In-ad shopping reduces friction between advertising and purchase than previous click-throughs, while offering greater measurement of an ad’s effectiveness.
Changing business models, diversifying revenue streams - As consumer growth becomes harder to achieve for individual businesses in the highly competitive video-on-demand sector, 2021 and early 2022 has seen announcements of leading players looking to trial different models for access.
Return to and Premiumisation of in person - Live entertainment increasingly competes against home-based channels to gain share of the consumer wallet and is working ever harder to entice consumers off their sofas.
The Next New Thing - Companies are investing in creating new metaverse experiences and, though definitely nascent, NFTs have the potential to put power and control over rights and assets back into the hands of creators.
Network Nine currently have the highest share for the week with 34.81%, followed by Network Seven with 33.63% and Network Ten with 20.76%.
The top two programs for this week were Seven News and Nine News with 874,147 and 858,517 respectively. Ten’s new show Hunted made a strong debut at 747,527.
Seven’s top-rated programs included AFL, and The Best and Worst of Red Faces (Hey Hey Saturday special) and Highway Patrol - making it the network with most entries in top 10. Nine and Ten are evenly split, with Nine also entering in Beauty and the Geek and 60 minutes. Ten had The Dog House Australia and Have You Been Paying Attention at 7th an 9th place.
Source: eTAM (July 2022)
In the week of the 18th – 24th July 2022, 1,156.9 million minutes of BVOD content was consumed, reaching 7.3 million people nationally.
Nine held the top 6 highest viewed programs, all across Love Island UK Season 8, with Tuesday’s episode achieving the top spot with a BVOD audience of 209,000. Ten 3 spots in the Top 10 with the first three episodes of the new show Hunted, and Nine rounded out the list of Beauty and the Geek’s premiere episode. Seven did not make any entries.