Advertising spend up – good news from Nielsen research

Nielsen has released good news for the media industry in its Adex Top 50
Advertisers Report for 2003. The report shows an overall growth of 15%
in Australia’s advertising market, to $6.8 billion over the past 12 months.

According to the report, the majority of Australia’s advertisers
increased their advertising spending every month of 2003 over
the corresponding 2002 months and by the third quarter ad
spending had achieved double digit increases.

While 2002 was considered a “soft year,” with growth coming off a low base, the report is still considered significant.

Nielsen Media Research managing director Peter
Cornelius says: “These results for 2003 were extremely positive when
compared against two consecutive leaner years for the industry.

“Furthermore Australia’s main media spending increases were
also amongst the highest growth percentages across the region,
and clearly outpaced the USA experience where a modest 5.1%
was recorded.

“Among the top 50 advertisers Coles Myer (once again
Australia’s largest advertiser), Telstra and Woolworth’s
increased their spending significantly. With the exception of
Village Time Warner and the NSW government, most major
advertisers lifted their spend.”

The biggest spending category growth was communications,
up 42% thanks to various 3G and Broadband ad campaigns.

The
biggest category, retail, expanded 12% to over $1.55 billion.

Other significant increases were insurance and assurance
(up 26%) and Motor Vehicles at 12%, continuing as one of the
most consistent media spending categories.