The A$12 billion advertising industry in Australia will increase 1.7 percent in 2009. However, with a price inflation of 5.2 percent, spending will actually drop 3.5 percent, according to a new report by Aegis Media, The Australian reported.
Only the online sector will mark a real growth of 9.7 percent, but the figure is cut to 5.7 percent if price inflation is considered.
According to Aegis, this year seemed to have a poor start in some media. For example, insiders predicted television spending will decline by up to 10 percent in the first quarter year-over-year, The Australian reported.
Official audited television revenue figures this week are expected to show the market in tough situations for the six months to December, 2008 - down 3 percent, a study estimated.
"Without question, certainly the first quarter of this year will be a challenging time and our only option is go get out there and be as innovative as we can for clients," said Seven sales chief James Warburton in a statement Tuesday.