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Covid shatters media advertising revenue while digital news is booming

According to PwC’s latest media industry report, the need for up-to-date information has accelerated the Covid-19 pandemic for consumers to switch from printed matter to digital news media.

Professional services companies have released a wide range of entertainment and media forecasts for the Australian market for the year. This is the 20th edition from 2021 to 2025. As expected, the global coronavirus epidemic has had a major impact on the local media situation. , Covid-19 has caused a sharp decline in Australian entertainment and media revenues since the start of the report.

Raw figures show that Australia’s total advertising spending fell 8% last year to $ 15.4 billion, while consumer spending fell just under 2% to $ 42.5 billion. Even the media, which received a lot of attention due to the nature of the pandemic and widespread lockdowns such as digital news and free-to-air television, were hampered by economic turmoil and advertising revenues declined.

In particular, the impact of Covid-19 is primarily seen in accelerating consumer behavior trends that were already well-developed before the outbreak of the virus, such as streaming on-demand services and the rise of individual content creators. A turning point in PwC estimates up to a few years. Nonetheless, analysts predict that within three years, the industry as a whole will return to 2019-level revenue.

Print medium

One segment that was central to the story of digital destruction is traditional print media. After years of significant decline, print advertising revenue fell another 24% last year to $ 882 million, and distribution revenue fell 6.7% to $ 735 million. Print advertising revenue in 2016 was $ 1.8 billion. According to forecasts, the market will fall further to about $ 600 million by 2025.

Printed Newspaper Advertising Market (A $ Million)

Meanwhile, the desire for news increased last year, with PwC reporting that 15.6 million Australians are regularly involved with the brand on a variety of platforms.

As the author pointed out; “After wildfires, floods, and pandemics, Australians have access to news from many sources. People have quarantine measures, lockdowns, and vaccination programs.”

According to PwC, digital news immediacy was arguably one of the driving forces behind the increase in overall digital news consumption. Advertising revenue in this segment was unaffected by a market-wide pinch, down 5.5% to $ 436 million, while digital subscriptions surged 23.5% to $ 375 million. And digital news advertising revenue is already projected to recover above pre-Covid levels this year.

Digital News Display Advertising Market (A $ Million)

The interim forecast for digital news advertising in 2021 jumped to $ 510 million, reaching $ 339 million, with a CAGR forecast of 3.8% for 2019-2025, $ 611 million in 2025, with an upper limit. It will be $ 670. .. Meanwhile, distribution is expected to rise at a CAGR of 11.4% over the same period, boosting revenue from $ 537 million to $ 636 million by 2025. Five years ago, that number was $ 147 million.

“We see five major power shifts affecting entertainment and media conditions to varying degrees. Comprehensive change is arguably a lasting digital disruption,” said PwCCMO, who co-led the report. Advisory Partner Justin Paps said. “As we move out of the pandemic, industry players will be at the forefront of evolving strategies and business models to understand the changing environment and embrace new consumer behavior.”

Covid shatters media advertising revenue while digital news is booming

Source link Covid shatters media advertising revenue while digital news is booming

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