TV Advertising Plummets: How Victoria's Government Shifted 90% of Its Budget to Digital
Mumbrella15 hours ago
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TV Advertising Plummets: How Victoria's Government Shifted 90% of Its Budget to Digital

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Summary:

  • Victoria's government TV advertising now accounts for less than 10% of its total media budget, down from over a quarter a decade ago

  • Digital advertising surged to more than half of the media spend by 2023-24, with a real-term spend of $53.6 million

  • TV spend was halved in just three years, from a peak of $32.4 million in 2020-21 to $9.7 million in 2023-24

  • The Transport Accident Commission (TAC) was the biggest spender, focusing on road safety campaigns across multiple channels

  • Overall advertising budget has been highly volatile, peaking during the Covid-19 pandemic and falling by 26% in recent years

The Dramatic Decline of TV Advertising

Victoria’s government TV advertising has collapsed over the past decade, now accounting for less than 10% of its total media budget, according to newly released figures.

In 2023-24, the latest year for which data is available, TV accounted for 9.4% of the state’s overall media spend of $103.2 million, equivalent to $9.7 million.

A Mumbrella analysis shows the sharpest cuts came in just three years: TV spend peaked at $32.4 million in 2020-21, fell to $21 million two years later, and was then halved the following year again.

Victorian TV and digital spend chart

Less than a decade ago, TV made up more than a quarter of Victoria’s advertising budget, with its share steadily declining from 23.4% in 2018-19.

The Rise of Digital Advertising

The collapse of TV has been mirrored by a surge in digital advertising, which grew from 22% of the state’s media spend in 2015-16 to more than half by 2023-24, a real-term spend of $53.6 million.

Digital had seen steady growth throughout the decade before its share jumped from 35% to 45% in 2022-23, the clearest spike in the past ten years.

Victoria’s media buying has been overseen by OMD since 2021, with its contract due to expire in June this year. Previously, Mediacom managed the account after taking over from Dentsu Mitchell in 2017.

Key Spenders and Campaigns

In 2023–24, government departments, including Visit Victoria, the Transport Accident Commission (TAC), and WorkSafe Victoria, accounted for 70% of total government advertising expenditure, while government departments, such as the Department of Education, made up the remaining 30%.

The biggest spender was the TAC, which runs major road safety campaigns across TV, radio, and digital, including the sobering “Something Dangerous” series against risky e-scooter riding behaviour.

Budget Volatility and Inflation Adjustments

Overall, Victoria’s government advertising budget has been highly volatile over the past decade, climbing from $75 million in 2015-16 to a peak of $151 million during the Covid-19 pandemic in 2021-22.

Spending then fell by 26% from $140 million during the 2022-23 election year to $103 million in 2023-24.

Adjusted for inflation, however, the 2023-24 budget is roughly equivalent to $84.5 million in 2018-19 terms, the last time the state spent at a similar level in real terms.

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