Marketers need to lead the charge to prioritise Australian media

Australian brands and media properties face intense scrutiny for aligning with negative parties, yet Facebook and TikTok are free to receive the majority of media budgets. Tumbleturn’s Jen Davidson argues its up to marketers to change things.

Jen Davidson is the managing partner of Tumbleturn marketing advisory.

Australia’s media landscape stands at a critical crossroads. The industry is estimated to represent $25.2bn, with steady annual growth forecast, according to Group M’s 2024 This Year Next Year report. Yet a profound transformation has occurred, with digital channels now commanding 72 per cent ($18bn) of this investment, and global giants Alphabet and Meta claiming the dominant share.

The shift has been seismic. Free-to-air television’s advertising share has plummeted from 27 per cent in 2014 to just 14 per cent in 2024. While evolving media consumption habits explain this transformation, the implications for Australia’s media ecosystem run deep and deserve attention.

The offshore exodus

When marketing budgets flow to these global platforms, economic benefits largely exit our shores rather than circulating within our local media and content ecosystem. Tech giants Meta and Alphabet minimise their tax burden by shifting profits to low-tax jurisdictions through service fees and licensing arrangements, significantly reducing their effective tax rates despite generating billions in local revenue. This capital migration significantly affects our industry, yet rarely receive adequate scrutiny at the executive level.

Media spending typically represents a company’s largest marketing expenditure, yet allocation decisions are frequently outsourced to third-party media agencies. What began as modest allocations to digital channels has ballooned, with 70 per cent or more of media budgets now commonly directed to Meta and Alphabet. As companies increasingly embrace environmental, social and governance (ESG) principles and corporate citizenship, their media investments deserve the same executive attention as other strategic priorities.

The double standard

A troubling double standard exists in brand association scrutiny. Australian media properties face intense examination, while tech platforms operate under different rules. For instance, a single misbehaving athlete can trigger a PR crisis for companies with team sponsorships, or broadcasting an advertisement during controversial radio programs like Kyle and Jackie O can spark public outrage and advertiser exodus. Yet these accountability standards rarely apply to YouTube, Facebook and TikTok, despite their histories of privacy violations, brand safety concerns, and algorithmic issues. Meta’s recent announcement about relaxing content moderation signals that upholding truth and decency isn’t their priority. Nevertheless, the flow of advertising dollars to these platforms continues.

A regional success story

The Boomtown Media initiative, established in 2018 with support from SCA, WIN, Seven, Nine and Ten Networks, Imparja, ACM and News Corp, offers a compelling model for media advocacy. This small team of dedicated professionals has effectively championed investment into regional Australian media properties, building a persuasive case for allocating advertising dollars to markets outside major metropolitan centres.

Their advocacy is well-founded. The initiative’s work has yielded substantial benefits for regional media outlets while delivering valuable audience connections for advertisers. With 36 per cent of Australia’s population residing outside metropolitan areas, the importance of reaching these consumers cannot be overstated.

What’s striking is the absence of a similar advocacy force for the broader media ecosystem. The industry lacks a dedicated, co-ordinated effort – a “Boomtown for Australian Media”.

Such an advocacy group could highlight the economic, cultural and societal benefits of keeping media dollars within Australia’s borders, creating a counterbalance to the seemingly automatic flow of advertising budgets to international technology companies. With focused leadership and compelling data, this initiative could reshape how organisations approach their media investment strategies, ensuring Australian voices and platforms receive appropriate consideration.

‘Buy Australia first’

Prioritising Australian media doesn’t mean abandoning global platforms, but rather ensuring local media receives appropriate consideration when allocating marketing budgets. Every time media budgets bypass Australian publishers in favour of Meta or Alphabet, we chip away at local journalism, creative talent and our industry’s foundation.

High-profile sponsorships of sporting events and cultural programs already receive thorough executive scrutiny due to their financial significance and brand implications, and the fact that these investments strengthen our social fabric. Media investments, which often substantially exceed these sponsorship costs, deserve the same level of strategic consideration.

The time has come for C-suite and marketing leadership to take direct ownership of media investment decisions. If every organisation prioritised Australian media channels by redirecting just 5 per cent of their digital investment into local media, this would represent a $1.1bn influx supporting Australian journalism and content development.

This modest reallocation could significantly strengthen our domestic media ecosystem. By driving these conversations and establishing clear expectations on media investment philosophy, companies demonstrate a commitment to Australian content creation while ensuring local media platforms receive vital support.

Australia’s media ecosystem supports our national identity, democratic discourse and creative industries. Its health demands the attention of business leaders. The question is not whether we can afford to prioritise Australian media, but whether we can afford not to.

Jen Davidson is managing partner of marketing advisory Tumbleturn.