Advertising spending in Australia fell nearly 12% year on year to AU$634 million in April based on Standard Media Index data, compared with the same period last year, when ad spend was boosted by the federal election, Jefferies said in a Monday note.
The market decline was 5.5% year on year, excluding the impact of the federal election.
Outdoor advertising proved to be the "most defensive" ad category, with underlying figures up 0.8% year on year, as billboard and street furniture segments grow.
The positive outdoor trend should alleviate concerns about the outlook for Nine Entertainment Co.'s (ASX:NEC) recently acquired billboard business, QMS, which is expected to hit double-digit growth in the fourth quarter of the year, Jefferies said.
Additionally, there were reports suggesting Foxtel may partner with Seven or Ten to bid for the National Rugby League broadcasting rights, but Jefferies believes it is unlikely, with Seven broadcasting the Australian Football League and Ten facing financial pressure.