Executive Briefing: Monday 19 October

Australian marketers face a shifting landscape with internet advertising outpacing agency-booked spend, indicating a broader base for new ad dollars. While senior marketers show increased confidence in AI for decision-making, its adoption outpaces safeguarding. Regionally, Queensland anticipates significant investment flows, influencing consumer spend and agency competition. Meanwhile, the under-16 social media ban's advertising impact has been less severe than initially projected. Advertising spend shifts to direct internet channels Australia's advertising market shows a two-speed economy, with internet advertising growing 14% to reach $19.8 billion in FY26, marking its strongest financial-year growth in four years. This growth, tracked by the IAB Australia Internet Advertising Revenue Report, contrasts with ad spend booked through media agencies, which tracked 2% lower over the same 12 months, according to Guideline SMI. The discrepancy suggests that a substantial portion of new advertising expenditure is now originating from outside traditional agency channels, prompting brands to re-evaluate how and where their marketing budgets are allocated and potentially engaging more directly with digital platforms. Marketers show high confidence in AI, but safeguards lag Senior marketers in Australia are exhibiting increased confidence in AI's role in decision-making, with 90% reporting easier decision processes over the past year, partly attributed to AI. This finding, from a Bench Media survey of 71 senior client-side marketing leaders, also noted that 59% still consider the volume of AI and new technology tools as a factor complicating decisions. However, the research highlights a critical gap: safeguards surrounding AI-assisted decisions have not kept pace with the growing trust marketers place in these tools, indicating a potential risk management challenge for brands integrating AI into their strategic operations. Queensland market poised for increased investment The Queensland market is gearing up for a significant wave of investment, which is expected to reshape consumer spend and influence agency networks. Industry leaders will convene at the upcoming AdNews LIVE Brisbane event to discuss these shifts, examining how economic data, including rates, inflation, wages, and household income projections for 2027, will impact brands and agencies. This regional focus suggests new opportunities and increased competition in the local advertising landscape, with agencies needing to adapt to changing pitch dynamics and demonstrate competitiveness for both local and national business as investment flows intensify. Under-16 social media ban has muted advertising impact Nine months following the implementation of Australia's under-16 social media ban, its impact on advertising has been less pronounced than initially predicted. Before the ban, approximately 624,000 Australians aged 14 and 15 were active social media users. Despite expectations of budget migration to platforms like gaming and music streaming, and a rise in advertising costs due to a smaller targetable audience, these shifts have not materialised significantly. Advertising costs have held steady, and much of the audience remains engaged with social media platforms, suggesting advertisers have found ways to navigate the new landscape or the ban's enforcement has not led to a dramatic exodus of younger users. Tesla unveils next-generation Roadster with advanced thrusters Tesla has revealed its redesigned second-generation Roadster, featuring integrated SpaceX thrusters that enable a 0-to-60 miles per hour acceleration in one second. Demonstrated outside Waco, Texas, the vehicle used high-powered fans and thrusters for dynamic manoeuvres, including lifting itself over other Tesla models. Scheduled for production in 2028, the Roadster will be available in three trims: Performance, Thrust, and an "invite only" Rocket variant, with reservations for the Performance and Thrust trims priced at $50,000 and $250,000 respectively. While positioned as a "halo car" not primarily for revenue, this innovation showcases a significant advancement in electric vehicle performance and potentially influences future automotive marketing.