Regional Australia has emerged as the new economic heart driving the nation’s economy, with consumer spending power of $250 billion annually and insights showing Boomtown residents now outspend their metro counterparts across several key consumer categories.
New data released this week by Boomtown, in partnership with CommBank iQ, has revealed the true spending power of regional Australia – and its scale, strength and momentum will make brands rethink their regional marketing investment.
The new Boomtown Spend Snapshot shows that regional Australia now represents a third of the national economy, with its 10 million residents spending around $250 billion annually.
Regional Australians have also emerged as the top spenders in several key categories, significantly outspending their metro counterparts across grocery, recreation, lifestyle, hardware, travel and auto, and matching them dollar-for-dollar in other spending sectors.
Boomtown Chairman, Andrew “Billy” Baxter said the new data made it impossible for brands and marketers to ignore regional media investment.
“There’s long been a myth that the big money lives in the big cities – and it’s just not the case,” he said. “The big value lives in regional Australia, where households consistently invest more per person across everyday categories.
“A third of the national economy can’t be an afterthought. Regional Australia isn’t incremental reach – it’s a third of the economy, and in most of the categories, the valuable third. For brands, real growth starts in Boomtown, where audiences are spending more, acting with intent and driving categories that matter. The brands who recognise this shift will be the ones leading in the next decade.”
The chief marketing officers of Reflections Holiday Parks and Inspiration Paints shared Baxter’s sentiments, having already experienced the spending power of Boomtown audiences.
Speaking at a recent Boomtown breakfast event, Reflections Holiday Parks CMO, Peter Chapman said the business had long devised dedicated campaigns for regional audiences, noting their ability to build mental availability and brand loyalty faster.
“We know regional Australia is underserved when it comes to advertising; there is a significant gap between investment and intention. But regional audiences do reward brands for showing up in their communities, whether it’s through traditional or more activated channels,” he said.
Inspiration Paints CMO, Joel Goodsir agreed, saying the brand simply achieved “more bang for its buck” in regional markets.“I would really encourage brands to show up in regional Australia, because they will quickly realise that every advertising dollar will work much harder there,” he said.
He also noted the strength of local loyalty in Boomtown, as regional audiences wanted to invest in Inspirations Paints’ local stores.
“Consumers want to shop with someone who is local. That just doesn’t exist in Sydney, for instance. We notice that loyalty heavily, and you can’t contrive it,” he said.
CommBank iQ CEO, Makenna Ralston, said: ““This is an audience that spends, and spends with intent. The data shows that Boomtown delivers disproportionate spend across key food, home, lifestyle, travel, auto, and fuel categories, consistently accounting for a greater share of national spend. In addition, Regional Australia has a stronger per capita spend in several major categories and faster growth in key sectors.”
The new reality of regional Australia
Queensland and NSW have emerged as the dominant economic forces regionally, spending nearly $150 billion combined annually.
Boomtown growth is being driven by Millennials (aged 25 – 44), with regional Millennials driving spending growth across more than half the key categories and outpacing metro in categories such as home products (up to 2.4x higher).
Boomtown residents routinely spend more per-capita across several key every-day categories, including groceries, auto, petrol, streaming, outdoor and active lifestyle, and hardware and garden, where they are leading share of spending and significantly outspending their metro counterparts.
Regional consumers are also matching metro shoppers in a number of key categories, including retail, domestic services and insurance, and health, where dollar-for-dollar spending is on-par.
Regional Australia is the nation’s grocery backbone, accounting for $56.2 million in grocery basket spend and a larger share of household budgets. Boomtown now makes up more than a third (38%) of the nation’s grocery spend, routinely spending 13% more per capita than metro grocery shoppers.
Regional Australians are also tuned in, representing more than a third (36%) of national streaming and online entertainment spend, and year-on-year growth is far outstripping metro.
Boomtown residents contribute disproportionately across many key travel categories.
For cruise operators, regional Australia is a primary revenue engine, accounting for 41% of total national category spend, with 36% higher penetration than in metro areas. Regional audiences’ spend on cruises is also continuing to grow, compared to negative growth currently being experienced in capital cities.