Magna Global’s recent study says marketers should think about digital and mobile first

The growth of digital ad spend continues to transform the Australian media market with digital investment set to hit $6 billion in 2016 and command 44% of all ad spend, according to a new forecast from IPG Mediabrands’ media intelligence and investment division Magna Global.

The new forecast says that by 2020 digital investment is expected to be a $9 billion market with close to 56% of all media spend being digital, 70% of which will be on mobile devices.

Magna Global is forecasting an increase of 3.4% in total adspend in 2016, while acknowledging that key factors such as the volatile global economy, consumer sentiment and overall business confidence in Australia are important influences as the year progresses.

Victor Corones (pictured), managing director of Magna Global, said that with the ad-spend gates fully open to digital, it had become critical that advertisers build their marketing around digital and mobile-first communications to ensure all paid, owned and earned media activity is leveraged to its fullest extent.

Says Corones: “As people continue to make digital channels their primary platform for entertainment and information, thinking digital and mobile-first ensures greater success of all media channels, both off and on-line, working and linking together effectively.”

Magna Global’s report shows the fastest growing areas within digital for 2016 will be video (+50% YOY) and social (+34.6%).  The mature search sector is expected to grow a respectable +8.6%.

The research also indicates that sectors such as TV and radio will face continued strong structural headwinds as audiences migrate to different devices and platforms, while new digital services such as content and music invade their airspace. In 2015 linear TV (FTA TV and STV) dominated the $4.2 billion screen market securing close to 90% of all dollars.  By 2020 Magna Global predicts linear TV services will command approximately 75% of all dollars.

Says Corones: “On face value revenues to linear broadcast TV appear to decline over the next five years. However Australia’s total screen market, which includes video and linear TV, will grow by half a billion dollars between now and 2020. When you reframe this market, linear TV will be competing in a growing sector.  This creates immense opportunities for the TV networks to continue to evolve their product and meet peoples’ needs. 

Out of home continues to thrive, says the Magna Global report. In 2016 ad revenues to this sector are expected to increase +11.7% YOY.  The digitisation of OOH assets is seen to be the biggest factor is driving that growth.  In 2016 Magna expects revenues via Digital OOH panels will grow 45% YOY.