Australia’s total advertising revenue is projected to grow to $28.9 billion, a 7.3% jump, according to Magna’s Global Ad Forecast.
Meanwhile, digital media owners’ advertising revenues are expected to reach $22.2 billion, growing by 11.9%. The report noted that digital advertising will account for 77% of total advertiser budgets.
Within digital advertising, search advertising revenues are expected to grow by 9.5% to $10.9 billion, while social media advertising revenues are projected to increase by 19.4% to $7.7 billion.
Digital video advertising revenues are expected to grow by 7.6% to $2.4 billion, static display advertising revenues are expected to decline by 1.8% to $400 million, and mobile advertising will represent 75% of total digital advertising budgets.
“We’re seeing so much volatility across the market, but we are forecasting media spend growth this year when you look at the total market, and this growth will be driven purely by digital channels and digital extensions of traditional categories. Social, Search and Video will be the winners in 2024,” Lucy Formosa-Morgan, managing director of Magna Australia, said.
The global media investment and intelligence company’s report highlighted that traditional media owners’ advertising revenues are projected to be $6.7 billion, a drop of 5.4% year on year.
Television advertising revenues are forecast to fall by 11.6% to $3.5 billion, while publishing advertising revenues are projected to decline by 10% to $600 million.
Audio advertising revenues will grow by 3.2% to $1.2 billion, Magna predicted, and OOH advertising revenues are expected to increase by 7% to $1.3 billion.
Meanwhile, the APAC ad market is expected to grow by 8.5% to reach $289 billion off the back of 9.5% growth.
This is a result of a slightly slowing but stable economic environment, the report said, where real GDP is expected to grow by 5.2% in 2024, according to the IMF.
Television budgets are predicted to stabilise in 2024 and grow by 0.2% following last year’s -2.3% performance. This increase in growth is primarily driven by the tailwinds of sporting events, primarily the Paris Olympics. The UEFA Euro 2024 tournament and other sporting events typically have only a minor impact in APAC markets.
Digital advertising revenues are a primary driver of growth, with search remaining the largest portion, representing $103 billion in 2024 and 47% of total digital advertising budgets.
Leigh Terry, the CEO of IPG Mediabrands APAC, said the outlook is positive for the region.
“Despite economic fluctuations, digital advertising remains the driving force, with search and social media leading the way,” he said.
“The digital dominance in APAC is expected to persist, with digital revenues forecast to account for 81% of total budgets by 2028, up from 76% in 2024.
“This shift underscores the growing importance of digital channels in reaching and engaging consumers in the region. Sri Lanka, India, and Japan are poised for significant growth in 2024, with mature markets in the region also showing signs of recovery and contributing to the overall positive outlook for APAC.”
Search advertising in APAC is substantially driven by retail media platforms, especially in China where Alibaba, JD.com, Pinduoduo, and Meituan are key contributors. The Magna report noted that core search is also spiking around the world as traditional search platforms like Google and Baidu see strong performance relative to recent results.
Social media advertising revenues will continue to dominate in 2024, growing 15% to reach $74 billion. Magna noted that social media budgets represent 34% of total digital advertising budgets, with both search and social media revenues driven by mobile devices as either the dominant or only way consumers access the internet across the APAC markets.
The report noted that 76% of total digital advertising revenues in APAC are on mobile devices.