Austrian Advertising Market Sees Unexpected Growth in 2024

Austrian Advertising Market Sees Unexpected Growth in 2024

Image: APA/THEMENBILD/GEORG HOCHMUTH

 

Austria’s advertising market experienced an impressive recovery in 2024, with gross advertising volumes rising by 7.2% to €7.13 billion, according to new data from the Focus Institute.

Traditional media dominated the market, growing by 6.2% to €4.96 billion, while print remained the leading platform, followed by television. However, private broadcasters continued to chip away at the advertising revenues of public broadcaster ORF.

“This level of dynamism and growth was not expected,” said Ronald Luisser, Managing Director of Focus, during a press conference. He described the year as “a very positive, very impressive result” after a weak 2023, when most months recorded negative growth.

Mixed Performance Across Sectors

Direct marketing saw a slight dip, falling by 0.3% to €539 million. Meanwhile, the sponsorship sector, known for its volatility, jumped 13.2% to €1.63 billion.

The rebound was largely fuelled by the retail and mail-order sectors, particularly food retail. Supermarket chains such as Rewe and Spar competed aggressively for price-sensitive consumers, using promotions and discounts to boost their market presence.

According to the data, the retail sector increased its advertising spend by €117.3 million, making it the primary driver of the overall market growth. Other sectors also saw notable gains, with Retthe food industry and pharmaceuticals each up by €22.6 million, and hotels and gastronomy rising by €20.5 million.

However, not all sectors performed well. The furniture and home furnishings sector recorded the largest decline, down €31 million, partly due to the collapse of Kika/Leiner, which prompted Lutz to cut back on advertising. Other industries that reduced spending included marketing and printing (down €14.7 million), confectionery (down €13.4 million), sports retail (down €9.4 million) and insurance (down €9 million).

Print Holds Strong

Print media remained the largest advertising channel, with spending rising by 1.3% to €1.78 billion. Television followed, growing by 8.1% to €1.47 billion, while online advertising saw the highest growth rate, up 12.4% to €1.06 billion.

Outdoor advertising, including billboards, increased by 11.9% to €338 million. Radio advertising edged up 1.1% to €299 million, and cinema grew by 9.5% to €14 million.

Within the print sector, daily newspapers were the standout performers, with advertising volumes increasing by more than 4%. In outdoor advertising, digital formats were the key growth driver.

The market shares of these sectors shifted slightly. Print’s share fell to 35.8% (from 37.6% in 2023), while television edged up to 29.7% (from 29.2%). Online advertising rose to 21.4% (from 20.2%), outdoor advertising climbed to 6.8% (from 6.5%) and radio fell to 6% (from 6.3%). Cinema remained steady at 0.3%.

ORF Loses Ground to Private Broadcasters

While private radio stations performed above average, ORF saw its radio advertising revenue drop by 3.2%.

A similar trend occurred in television, where private broadcasters posted double-digit growth, while ORF’s advertising revenue fell by around 3%. Overall, television advertising spending increased by 8%.

Summing up the results, Luisser and fellow Focus Managing Director Michael Degner noted the challenges for ORF. “While private broadcasters performed strongly, ORF experienced a decline, reflecting a shift in the advertising landscape,” they said.

Despite the strong 2024 figures, the outlook for 2025 is less promising, with only marginal growth of 0.7% forecast.

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