Aussie media bracing for 2001 adspend dip

<p>SYDNEY: Australia's total advertising spend for 2000 rose to </p><p>Adollars 4.73 billion (USdollars 2.5 billion) - a 9.7 per cent increase </p><p>compared to the 1999 figure - but the rise comes with a warning that </p><p>revenues could slump. </p><p><BR><BR> </p><p>The figures have been issued by the Commercial Economic Advisory Service </p><p>of Australia (CEASA). </p><p><BR><BR> </p><p>However, managing director Bernard Holt predicted a fall in revenues in </p><p>2001 on the basis of cyclical trends that show the market falling for </p><p>one or two years after three years of rising revenues. </p><p><BR><BR> </p><p>The increase in revenues last year built on another rise in the 1999 </p><p>total over 1998. The 1999 total reached dollars 4.31 billion, which </p><p>represented a near four per cent increase on the previous year, adding </p><p>weight to Holt's view. </p><p><BR><BR> </p><p>CEASA's predictions could be softened by the effect of up to five state </p><p>polls and national elections that are due in 2001, which are expected to </p><p>boost advertising spend. </p><p><BR><BR> </p><p>Figures for 2000, excluding classified directories that attracted </p><p>dollars 508 million-worth of advertising, show that newspapers attracted </p><p>the largest amount of adspend of 41.27 per cent, or dollars 1.74 </p><p>billion. Television was in second place with 33.74 per cent, or dollars </p><p>1.42 billion. Comparing the 1999 figures with the following year's for </p><p>the two mediums, TV closed some of the ground between itself and </p><p>newspapers. Television's share rose from 31.42 per cent in 1999, while </p><p>newspapers found their stake falling from 1999's 41.76 per cent. </p><p><BR><BR> </p><p>In terms of revenue and market share, outdoor was the biggest </p><p>gainer. </p><p><BR><BR> </p><p>In 1999 it had 4.12 per cent of adspend; last year that rose to 5.46 per </p><p>cent. </p><p><BR><BR> </p><p>Both magazines and radio saw their share shrink, although the overall </p><p>market increase allowed each to post revenue gains. Magazines saw their </p><p>share slip back from 7.49 per cent in 1999 to 7.42 per cent in 2000, as </p><p>radio fell back from to 7.49 per cent. Magazines' income rose to dollars </p><p>314 million and radio's to dollars 355 million. </p><p><BR><BR> </p><p>Holt said that an examination of the '90s as a whole showed a pattern of </p><p>recovery and recession. "The period '90-'91 were recession years with </p><p>the obvious effect on advertising expenditure. Then recovery for one </p><p>year and a drop followed by recovery and two drops. Then recovery and </p><p>two drops. </p><p><BR><BR> </p><p>Finally, another recovery. On the evidence so far, 2001 will be a drop." </p><p><BR><BR> </p>