TV ad growth slows but outlook still optimistic

Growth in television advertising revenue slowed dramatically in 2005, reflecting a slowdown in the domestic economy.

Television Broadcasters Council executive director Bruce Wallace said yesterday that growth was expected to slow further this year although the industry remained confident that revenue would continue to grow, albeit at a slower pace.

The industry is now in its fifth successive year of revenue growth and generated $666.4 million last year.

But the 3.6 per cent increase was less than half the level of growth experienced in 2004 and well down on the 12 per cent growth in 2003.

"What happens is that some categories get competitive and will advertise more - last year computers was a good case in point.

"So, even if the economy slows overall, that doesn't mean advertising will decline."

In 2005, spending on advertising grew in the categories of computers, Government departments, home improvement, pharmaceuticals and telecommunications.

Wallace said the increases were driven by a combination of economic buoyancy and sustained strength in television audience numbers.