Australia Decides!

Apart from eight weeks of political torture, what will the federal election mean for advertisers and the broader media landscape?
Here we focus on three key areas
1. Will the election bring a much needed revenue boost to the market or change marketing budgets?
2. What is the impact on broader business confidence
3. Media reform legislation once again put on the back burner!

Our take

1. The answer is NOT really! Talk of an early election has abounded for months, so there is little surprise for agencies and clients in the timing. Those clients wishing to avoid the election noise will have done so and those going BAU, will have committed in advance. We expect to see a nominal lift (a few %) in ad spend across May/June, although our intelligence suggests it may only offset what was already a subdued and slowing market … which leads us to the next point
2. Australian government paralysis has persisted for years, be it internal party wars, in and out PMs and loose cannon senators blocking crucial bills. The net result for business has been little certainty on legislative direction, offering little or no confidence for business to invest in infrastructure, job and employee development and marketing. Further hung parliament or an obstructionist senate, alongside a moderately pacing economy could put significant brakes on advertising spend and we might expect a small YOY decline across the next 12 months. A clear electoral outcome and mandate for either party may just provide business the necessary certainty on whether to hold’em or fold’em!
3. Lastly, media reform is long overdue but has met only failure across successive governments. Traditional media companies must be unencumbered from burdensome legislation in order to compete effectively with newer digital rivals, especially if they are to remain effective producers of local content, with the many jobs and benefits that brings to the local media and entertainment industry. As it currently stands their newer rivals have done little for investment into the Australian economy. It’s 2016 and with both parties’ spruiking jobs, growth and business plans for the future, one might hope laws from the 1980’s will finally go the way of the dinosaur.

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The Wrap is a fortnightly review of the latest trends and technologies from around the globe.

In a constantly evolving marketplace, we identify the best new technologies, campaigns and consumer behaviours and cast The Media Store lens over their practical application and efficacy, to ensure we and our clients remain at the forefront of the news.