SMI Feb: Agencies hit a hurdle with total bookings down 13%

Australia's media agency market has hit a tough comparative hurdle from last year’s record February, with total bookings for February 2017 so far back 13% at $467.7 million as timing issues and lower Government ad spend hurt the market, reports SMI.

Last February was a leap year and as such was longer, featuring an extra Monday, Saturday and Sunday compared to this month. That especially affected the print media this month as the industry produced fewer editions. Meantime, radio was also affected by the one less Monday as this month’s data now features fewer agency payments made on a week-commencing basis.

All major media are so far reporting lower bookings this month, although digital’s interim decline of 19% will revert to a flat or slightly positive result once late digital bookings are included at the end of the month.

SMI AU/NZ managing director Jane Schulze said SMI’s product category data showed the softer demand was widespread with the majority of large categories reporting double digit declines in advertising expenditure in February 2017.

One of those categories is Government, which grew rapidly in the lead-up to last year’s Federal Election, but is now reporting a $6m decline in bookings (-26.2%) to $16.9m.