Ad spend hits new high but digital gains at TV's expense
Guideline SMI reports mixed results as digital video and audio thrive, while TV and print lag
Marketers may be celebrating a record-breaking year for ad spend, but not every channel is winning. According to Guideline SMI's latest report, total media agency bookings for FY25 have surpassed US$9 billion for the first time, representing a 2.4% year-on-year growth.
Yet behind that milestone is a clear signal that advertisers are shifting priorities. Traditional media, particularly TV, is losing share while digital formats continue to attract budget.
This article breaks down where spend is moving, which formats are struggling, and how marketers can adjust their media mix to stay competitive.
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Patrecia Meliana
Key numbers from FY25
SMI’s data shows an all-time high for media agency bookings, increasing by US$212 million from the prior year. Over the last decade, the total campaign value booked by agencies has grown 31.4%, translating to an additional US$2.15 billion.
Much of that growth is driven by digital and outdoor media. Both categories have seen investment double over the past ten years. However, the number of individual media vendors has dropped, from 7,400 in FY2014/15 to 6,000 in FY24/25, indicating a more consolidated and possibly more strategic buying environment.
TV down, digital up: who gained, who lost
Ad dollars are clearly on the move. SMI’s FY25 data reveals a sharp contrast between declining legacy formats and fast-growing digital channels. For marketers tracking ROI, these shifts offer valuable signals on where audience attention is heading—and which formats may no longer justify their spend.
- TV continues its decline
TV ad spend dropped 7.6% year-on-year. Combined video advertising, which includes both TV and digital video, declined by 4.6%. The standout performer was digital video, which rose 20.8% and shows where audience and advertiser attention is going.
- Audio remains mixed
Digital audio climbed 22.1%, but radio remained flat at 0.3%. Taken together, the audio category grew 3.1%, hinting that listeners are shifting to digital platforms even if radio spend holds steady.
- Print faces another tough year
Newspaper ad spend dropped 3.4%, while digital publishing fared worse with a 17.8% decline. In contrast, magazines recorded a modest 2.2% gain, helped by a 37.7% increase in digital magazine spend.
- Cinema and outdoor bounce back
Cinema grew 11.6% over the year. Outdoor also saw solid performance, up 5.4% in June, suggesting renewed advertiser interest in high-impact formats that command attention in physical spaces.
Why this matters for marketers
Media budgets are under more scrutiny than ever, and this year’s SMI data gives marketers clear signals on where to trim and where to double down. As audiences shift behavior and formats evolve, here’s how to align your media strategy with what’s actually performing.
- TV budgets need reallocation
With linear TV falling 7.6%, marketers should reconsider heavy reliance on traditional placements. Streaming platforms and digital video channels are picking up the slack and deserve a bigger share of media plans.
- Digital audio is a growing opportunity
Audio remains a high-engagement channel. As audiences continue migrating from radio to digital platforms, marketers should explore podcast ads, dynamic audio, and programmatic placements to stay relevant.
- Print’s decline demands smarter choices
Not all print is dead, but the collapse in digital publishing should prompt reevaluation. Magazine partnerships, especially niche or lifestyle-focused digital mags, may still provide high-value engagement.
- Physical formats are still in play
Cinema and outdoor have regained momentum. These formats offer brand-safe environments and are particularly effective for awareness campaigns. Consider blending digital and physical to maximize visibility.
June slump: short-term dip or early warning?
Despite the strong year, June numbers suggest caution. Total bookings were down 7.1% compared to the same month last year. The drop was driven by a 34% fall in Government category ad spend and a 21% decline in the Food/Produce/Dairy category.
However, not all sectors were down:
- Retail ad spend grew 10.4%
- Insurance spending increased 11.4%
- Newspaper magazines jumped 23% for the month
- Video and streaming sites grew 12.3%
The June results also mirrored trends in New Zealand, suggesting regional shifts rather than isolated outliers.
While the overall ad market has grown, the underlying trends show a clear direction. Digital channels, especially video and audio, are gaining fast. Traditional media like TV and print are losing ground. And physical formats such as cinema and outdoor are regaining relevance.
Marketers need to stay agile. A smart media strategy in FY26 will favor adaptable planning, a diversified channel mix, and data-backed investment in formats where audiences are actively engaging.
