Ad spend bounced back in a big way in 2010, with marketers regaining their confidence as they looked to put the dreaded GFC behind them.
The Nielsen Company estimates that ad spend in Australia rose by almost 10% last year, making the media a whopping $10.05 billion advertising market in 2010.
And if ad spend is a barometer of sales expectations, brands will be happy to see that retailers were among the most confident spenders. Retailers upped their spend by 6.6% on 2009 levels, making it by far the largest advertising category. They spent $2.18 billion, accounting for almost 22 cents of every dollar spent in main media in 2010.
Woolworths Supermarkets increased its ad spend by 28.7% to $98.8 million, while rival Coles boosted spend by 18.6% to $77.1 billion.
Warc’s latest International Ad Forecast echoes Nielsen’s findings, estimating that Australian ad spend increased by 8.9% in 2010 in local prices.
Growth is expected to continue in 2011 but at the more restrained rate of 5.8%, Warc estimates.
The Nielsen Company agreed about 2011’s outlook, saying: “Media reports indicate patchy results across some media, possibly due to the recent devastating floods and cyclone damage [in Australia], consumer caution over escalating food and energy costs, and concerns over the impact of the Government’s proposed carbon trading levy.”