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Ad Spend from Cruise Ship Companies Set to Change Course
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Ad Spend from Cruise Ship Companies Set to Change Course

Australians are willing to take to the seas with more than half (55%) considering going on a cruise. Strong growth in advertising spend from cruise operators is driving  consumer enthusiasm, but questions have been raised as to whether Sydney’s infrastructure can support demand. If tour operators pull Australian ports from their routes, the current trend in advertising growth could face a sudden change in course.

Over the past four years, advertising spend from cruise operators has seen a 58% increase. At the current pace of growth, advertising dollars could reach $79 million in 2017. Spend allocated  to international cruises are the wind in its sails, with year-on-year increases of 12% and 18% in 2015 and 2016, respectively. International cruises accounted for almost three-quarters (74%) of advertising spend in 2016.

Nielsen data for 2016 reported two-thirds of advertising spend in the category was assigned to print (64%), followed by TV (27%). This trend is consistent over the past four years, with more than half of media spend going to print on average. If cruise ships no longer visit Australian shores, the resulting impact on advertising spend will hit local print media hardest.

Insights from Nielsen’s Ad Intel 2016 shows that the top six advertisers accounted for 54% of total spend in the cruising category. Over 200 cruising advertisers account for the remainder.

The biggest spender was Royal Caribbean Cruises which had almost double the expenditure of its nearest competitor. However, this dynamic could shift dramatically with Royal Caribbean Cruises indicating it will limit services to Australia.

Source: Nielsen Ad Intel 1 January 2013 – 30 April 2017.

Source: Nielsen Consumer and Media View | National Survey 1 2017 (Jan-Dec 2017), aged 18+