Key points
- CommBank is redirecting part of its existing marketing budget to increase investment in Australian media by 40 per cent over FY27 and FY28.
- Evolving industry evidence and CommBank pilots suggest advertising with news brands delivers improved consideration, AI chatbot citations and action intent.
- The bank believes Australian businesses spending more of their advertising budget with local media could help sustain Australian newsrooms and creators.
- Smaller, independent media and creators will be a key focus.
Commonwealth Bank has today announced it will increase the amount it spends on advertising with Australian media by 40 per cent across FY27 and FY28, compared with the previous two years. The bank will fund the increased investment by redirecting part of its existing marketing budget.
The rationale for the move is based on evolving industry evidence which suggests advertising partnerships with news brands deliver substantially higher action intent, consideration and AI chatbot citations when compared to non-news sites. CommBank has run a number of comparison trials over the past year and has seen strong returns from its local media partnerships.
Advertisers are vital participants in the local media ecosystem
The announcement comes as the business model that has long funded Australian journalism continues to change, with local media businesses seeing revenues decline as more domestic advertising dollars flow to global technology platforms.
Pat Crowley, Managing Director of CBAgency (CommBank’s in-house media and creative agency), said businesses had a role to play in supporting a strong local media sector.
“A diverse and trusted local media sector is central to a healthy democracy. The economic model that funds Australian journalism has changed, but the need for trusted news and information has not,” Crowley said.
“Australian businesses can play an important role in assisting with the sustainability of local media. The pressure on the sector came from a shift in the commercial settings of the news economy, and businesses that advertise are a critical part of that economy. We can all contribute to help with solutions.”
Building on existing partnerships and establishing new ones
CommBank is using the redirected spend to deepen its existing relationships and establish new ones with Australian media organisations and content creators. The bank already works with a wide range of organisations and creators across the sector.
Crowley said investing in the local media sector made sense on a number of fronts.
“Supporting the domestic news and information ecosystem is an important part of this decision. We’ve been moving in this direction for around 18 months and have already seen that deeper partnerships with local media can drive stronger commercial outcomes and shifts in customer behaviour,” Crowley said.
A key focus will be smaller, independent publishers, including members of the Digital Publishers Alliance. The alliance represents more than 130 media titles from independent digital-first publishers across Australia.
“This is a welcome and important announcement. Investing in local Australian media has an oversized impact on the entire eco-system, from supporting jobs to creating content and keeping the money in Australia. CommBank’s leadership in this area will have a direct impact on the health of Australian media and democracy,” Digital Publishers Alliance Chair Tim Duggan said.
What a broader reallocation of marketing budgets could achieve
CommBank believes the media sector would be on a stronger footing if more Australian advertisers redirected even a small share of their existing marketing budgets to local newsrooms and content creators.
