Canberra's advertising industry, already reeling from cuts to the federal government's ad spend, has been hit with a dramatic reduction to the territory government's media budget.
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An analysis by The Canberra Times shows the ACT government, which has imposed strict efficiency dividends as it tries to return its budget to surplus next year, has slashed nearly $5 million from its ad spend since 2008-09.
A leading industry figure says that many of the city's advertising firms are ''suffering'' but the government was unrepentant yesterday, saying it believed the community wanted to see less official spending on advertising, not more.
The cuts have been most savage in Territorial and Municipal Services with the ''roads, rates and rubbish'' directorate slashing its advertising spend from $4.7 million in 2008-09 to just $700,000 in the past financial year.
Health, Justice and Community Safety, and Environment also recorded significant reductions in ad expenditure, with Community Services the only directorate spending more, a result attributed to the inclusion of ArtsACT into the directorate.
Warren Apps, managing director of media buyer Grey, said pressure on government advertising had added to the strain on the local industry.
''This is reflected across both the federal and ACT governments and we don't anticipate it will improve given the increased efficiency squeeze and the relatively recent rise of government advertising as a political football,'' Mr Apps said.
''Much of our local industry relies on government business, although it's fair to say that for many this means a focus on federal government work. Those who rely, in some cases almost completely on this, are really suffering right now.''
Mr Apps said the ACT government was dwarfed by the Commonwealth as an advertising client.
''In terms of the ACT government, they've traditionally shared work around and a significant amount is generated in-house, without the assistance of agencies,'' he said.
''The impact on media owners, however, would probably be more significant.''
''Directorates are spending less on advertising and marketing - and that can be attributed to a need across the government for tightening of belts,'' Chief Minister Katy Gallagher said.
Ms Gallagher said that emerging technology was allowing governments to spread their messages via new media.
''Where we used to spend on small to medium campaigns, we now use the Community Noticeboard website, for example timetotalk.act. gov.au and social media. All directorates now have Twitter accounts too; we are moving into new spaces to reach the community.''
