SMI has unveiled its ad spend trends for December 2023 and the calendar year 2023 which shows ad budgets from media agencies in December fell 9.1% – total ad spend in 2023 was 2.7% less than the previous year although it was the second-largest annual ad spend ever recorded.

When Government and Political Party ad spend is excluded, the underlying ad market shows a reduced decline of just 0.9% (or $72 million) for 2023.

Results for the month of December showed the market back 9.1% YOY with Outdoor the only major media to grow revenues (+6.8%). Financial year-to-date results show the market is so far back just 2.3% given the growth evident in Q3 this year. Within that Outdoor revenues are up 14.3% and Digital ad spend has lifted 3.4%.

The total ad spend in 2023 was 8.2% larger than the pre-COVID 2019 total. Outdoor media reported a record level of revenue in 2023, with the total up 15.1% (or 18.5% on an underlying basis). Outdoor media’s revenues in 2023 were 70% higher than in 2020 and 43.3% above the 2021 total.

Digital bookings continued to grow in 2023, with Video Sites being the star sector. The value of Video-based Digital campaigns grew by 7.4% in 2023, getting closer to the traditionally larger Display inventory (+1.4%) with only $150 million now separating the two.

The Audio market also delivered CY2023 growth of 0.5% on an underlying basis when the growing podcast and streaming markets were also included.

Among key advertiser groups, the Automotive Brand category reported the highest increase in ad investment across the year with that category’s spend up 11.3%, followed by Insurance ad spend (+7.7%) and then Restaurants (+8.6%). The Government category reported the largest decline with total ad revenues back by more than $100 million on the CY2022 year.

Jane Ractliffe, Guideline SMI APAC Managing Director, said, “Outdoor media’s recovery from the COVID era has been quite extraordinary with growth continuing to accelerate each year since the pandemic with this year’s revenues now 70% higher than the COVID-hit year of CY2020 but also 43.3% above the CY2021 total even though the media had already reported a strong recovery that year.’’

She added, “So Outdoor is doing well in a market that’s emerged as the second largest ad market of all time, with last year’s abnormal Federal Election boost delivering a huge record total. And despite higher interest rates and global uncertainty the CY2023 total is just 0.9% below that record level on an underlying basis.’’