Which advertising businesses can we expect to grow?

Advertisers are expected to report full-year earnings for the year ending December 31, and while some may be down in the mid-single digits, there are still plenty of opportunities for growth.

Key takeaways Advertiser expectations for the first half of the year are for full-month revenue to grow by 5.3 per cent to $12.4 billion, according to industry data provider Canalys.

That is a modest pace, but it would be up more than 40 per cent from the year-ago period.

This year’s figures, on the other hand, show revenue growth to be around 7 per cent.

There are also indications that the sector will be boosted by a boost in the supply of new, and particularly organic, advertising.

The Australian Marketing Federation expects the total number of new adverts will reach a record of 18.4 million in the year to end December 31.

That’s up from 15.3 million in 2016 and 16.1 million in 2015.

The number of organic advert orders will grow to 3.3 billion from 3.2 billion in the previous year, according the Australian Institute of Public Health.

And this year’s number of consumers buying advertising online has been forecast to increase by 2.4 per cent, to about 14.7 million.

The industry has been expecting a surge in the number of people who will be using the internet to buy their ads.

However, Canalys believes this trend will slow down in 2018 and 2019.

“We expect the online ad market to continue to grow and will continue to experience strong growth for the next few years,” Canalys chief executive Andrew Walker said.

“The market for online ads is expected to be strong, with growth likely to be driven by growth in the proportion of Australians aged 18-64 who are using the web to buy advertising, and by the growth in mobile and tablet advertising.”

It is forecast that the number and size of adverts purchased by Australians aged between 18 and 64 will increase by 4.4 percentage points in the next 12 months, and a further 4.6 per cent in the years ahead.

Walker says the market for advertising will grow even more in 2018 as people transition from digital advertising to mobile, tablet and other forms of digital advertising.

“As people continue to shift to the digital world, we anticipate the number advertising will continue its rapid growth in 2018,” he said.

There will also be more opportunities for businesses to grow in 2018.


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