The Size and Impact of the Marketing Industry in Australia

Overview

Australia’s marketing and advertising sector is a significant force, playing a vital role in driving the country’s economy, employment, and business growth.

According to a report from Deloitte Access Economics, the industry contributed an impressive $53 billion to Australia’s economy in 2022, accounting for approximately 2.1% of the nation’s GDP.

This underscores the essential role that marketing and advertising play in stimulating economic activity across various sectors in Australia.

Economic Contribution

In 2022, Australia’s advertising spend reached $18 billion, reflecting a 12% growth in the industry’s economic impact since 2014. While global spending patterns have fluctuated, Australia’s market has expanded at a faster rate than many other emerging nations on a per capita basis. This growth demonstrates the strength and adaptability of Australia’s marketing sector.

The Advertising Agencies Sector

The advertising agency sector, which is a crucial part of the wider marketing industry, was valued at $3.8 billion in 2023. However, this sector experienced a slight contraction of -0.7% in 2023, mirroring a broader trend of more modest growth, with the market shrinking by an average of 0.3% annually from 2018 to 2023. Factors such as intense competition and fluctuations in business profits are the challenge to this part of the industry.

Despite these hurdles, the advertising market as a whole remains resilient, and its outlook remains positive. The Australian advertising market is projected to reach $19.88 billion by the end of 2024, with the largest share coming from search advertising, expected to generate $6.2 billion.

The Rise of Digital Advertising

A dominant trend in Australia’s marketing industry is the increasing shift towards digital advertising. By 2029, it is anticipated that 78% of all ad spending in Australia will be allocated to digital platforms.

Programmatic advertising, which involves automated systems for purchasing digital ads, is also expected to make up a significant portion of ad revenue, accounting for 90% of total revenue by 2029.

As Australian businesses invest more in digital campaigns to engage with tech-savvy consumers, the future of marketing will be driven by ongoing technological advancements.

Employment and Community Impact

The marketing and advertising industries are key employers, with 153,400 Australians working directly in advertising or related supply chain roles in 2021. This includes 85,917 individuals in agencies and 91,500 people employed in industries reliant on advertising revenue. Since 2015, the marketing sector has grown at more than double the rate of the overall job market.

Beyond economic contributions, the industry also has a positive impact on the community, increasing the average Australian’s living standards by $2,100. Furthermore, it plays a significant role in funding public infrastructure, with $352 million in infrastructure projects being supported by advertising-generated revenue.

Marketing’s Influence on Business Growth

Marketing also plays a key role in business performance. In 2023, the top 100 Australian brands were valued at $194 billion, with advertising being a crucial factor in this high valuation.

Additionally, companies that leverage advertising to communicate their values to employees experience stronger retention rates, highlighting the internal advantages of effective advertising strategies.

Conclusion

The Australian marketing and advertising sector is a major driver of the economy, influencing everything from consumer behaviours to business success. As digital platforms continue to dominate, the future of marketing in Australia looks set for continued growth and transformation.

Despite some challenges within the advertising agencies sector, the broader industry remains a cornerstone of the nation’s economic success and business landscape.