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Australia’s Consumer Electronics Marketers Decrease their Ad Spend in Q1, 2017

Announcement posted by Third Avenue Consulting 30 Jun 2017

New SMI Data Shows Category’s Digital Ad Spend Trends for the First Time

AUSTRALIA’S Consumer Electronics marketers have decreased their advertising expenditure by 7.7% in the first quarter of 2017, despite the increasing popularity and sophistication of electronic gadgets and cheaper prices, according to new data from Standard Media Index (SMI).

In the first quarter of 2017, advertising expenditure in the consumer electronics (CE) category fell by 7.7% to $20.1 million, compared to Q1 2016, the SMI data found. In the calendar year 2016 the sector was also down 0.2% to $123.79m.

It appears that the CE sector is turning to ‘traditional’ media for its ad spend investment, at the expense of digital media. The media sectors to benefit from additional CE ad spend during Q1 2017 were newspapers, which jumped 105% although off a low base, cinema, which was up 39%, and radio which jumped more than 10,600%.

Digital ad spend declined by 11% in the quarter, while magazines plummeted 74.7% and outdoor advertising was down 17.2%.

SMI collects actual advertising payments from Australia’s major media agencies and as such has the only real ad spend data for 40 major Product Categories and 126 Digital Sub Categories, including Consumer Electronics. SMI’s exclusive data provides the only ad spend data in never-before-accessible sectors such as Search and Social Media. This new data gives advertisers their first view on whether their investment into these Digital key sectors over or under indexes relative to their competitors.

“The Consumer Electronics market is obviously testing different media options, for example, they’re using Radio for the first time in a long time, have dramatically reduced their Outdoor spend and even reduced Digital spending. It is a matter of testing different media channels to find the most effective return on their advertising investment in what is an intensely competitive sector,” SMI AU/NZ Managing Director Jane Schulze said.

“However our data shows that it’s not the gadgets, such as Personal Electronics Devices, reducing Digital spending, but the more established CE market such as TV manufacturers.”

Last year, Personal Electronic Devices (PEDs) grew their digital ad spend by 16%, while TV/DVD/PVR/Gaming Consoles/Streaming Devices products reduced their digital spend by 10.2%. Radio/DAB/Sound Entertainment contracted their digital ad spend by more than 79%, while cameras/video recorders/products increased their digital spend by 189% last year.

Within digital media channels, PEDs and TV/DVDs stepped up their Q1 2017 ad spend in content sites, such as quality news sites, to $1.7 million and $1.3 million respectively. PEDs also doubled their investment in programmatic advertising through exchanges to $1.9 million.



About Standard Media Index

Standard Media Index (SMI) was established in 2009 in Sydney and has offices in New York, London and Madrid.  SMI partners with leading global media buying agencies to provide independent, accurate and timely advertising expenditure data to its clients to facilitate informed analysis of the media sector and product category expenditure. Data is sourced directly from advertising agencies’ billing systems and then aggregated to show the combined picture of media Agency ad spend across all major media, media sectors, 40 product categories and 126 Digital product categories.  It allows subscribers to monitor and analyse key data points that can be actioned to grow share and make better investment decisions. SMI provides the only clear picture on how ad dollars are being spent. Its Australian data covers more than 90% of all Agency spend and SMI works with media Agencies in more than 15 global markets.  http://www.standardmediaindex.com/


For further information contact:

Jane Schulze                                                                   Rochelle Burbury

SMI AU/NZ Managing Director                                  Third Avenue Consulting

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