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Online Advertising

Advertising Revenue by Media Sector in Australia

According to the Advertising Federation of Australia (AFA), advertising in online media is growing rapidly, having increased in terms of share of total advertising revenue across media sectors from 8.41% (A$1.001 billion) in 2006 to 10.63% (A$1.35 billion) in 2007. Spending in online media advertising has grown by 61.5% from 2005 to 2006 and 34.9% from 2006 to 2007. The figures, segregated based on media sector, are shown on the left.

In a survey conducted by Roy Morgan Research, 64% of advertisers surveyed have utilised online advertising channels in the 12 month period ending March 2007, compared to 59% in January 2006. Survey responses also indicate that advertisers, agencies and publishers were optimistic about online media being a mainstay amongst the overall media sectors, with 82% agreeing with the statement that “the Internet will be a vital component of my company’s marketing strategy over the next three years”.

Source: http://www.roymorgan.com/ news/press-releases/2007/624/

Australia - Social Media and PR across Asia
Online advertising expenditure for the quarter ended September 2007 was $347.75 million, which according to the Interactive Bureau Australia was the largest quarter ever recorded. General Display, Classifieds and Search and Directories advertising accounted for 28%, 26% and 46% of total online advertising spending respectively. In General Display advertising, the top 3 most dominant industries were finance, motor vehicles and computer and communications.

* General Display - banner advertisements, affiliate marketing programmes, partnerships, sponsorships and emails
* Classifieds - ads placed to buy or sell a product or service
* Search & Directories - online directory and search engine listings

(Source: Online Advertising Expenditure released by PWC for Interactive Advertising Bureau Australia (IAB) Quarter ended September 2007, available here.)

Forecast

Emarketer predicts that global online advertising will grow by 23.3% in 2008 and 17.8% in 2009. AdWeek
also reports that global online advertising will reach $55 billion in 2010. It would seem that online ad spending in Australia will follow this trend, and this is supported by predictions by ZenithOptimedia that the Australian ad spend market share will reach double digits in 2008, compared to 2011 for global online ad spend.

Source: http://www.adweek.com/aw/iq_interactive/article_display.jsp?vnu_content_id=1001614147
Source: http://www.emarketer.com/Article.aspx?id=1006074
Source: http://www.marketingvox.com/online_ad_spend_achieves_doubledigit_share_in_two_markets_surpasses_outdoor_globally-022739/

In the 2007-2011 Entertainment & Media Outlook webcast by PWC, industry leader Paul McNab predicts a double digit growth in the usage Internet in 2007 to 2011. He talks about 2006, where new revenue from the online environment eclipsed that of the physical environment, as a tipping point. In the webcast he also makes the following points:

1. Consumer is king

People are increasingly spending more time online with entertainment channels such as Facebook, and engaging in services like Google, and advertisers and producers of content likewise should respond to this phenomenon, which is predicted to continue in 2007 to 2011, because ad revenue would follow.

2. Home broadband will drive change

This growth should be supported by a broadband infrastructure that makes it available to homes, which will change how users interact with the Internet. There appears to be increasing political will for the expenditure necessary for a national roll-out, and the industry will flourish if that happens.

3. Need for insights

Online advertising may offer rich data to advertisers that allow them to assess whether their message has been tailored for the right audience.However, this data needs to then be taken further to form an insight in order to be useful for advertisers.

4. Hope for traditional media?

Out of home advertising, one of the oldest form of advertising, has seen a growth rate of 7% in 2006 and cracked the top 3 growth categories in advertising. This seems to send an optimistic message for traditional media.

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Latest page update: made by steph.siow , May 26 2008, 9:52 AM EDT (about this update About This Update steph.siow Edited by steph.siow

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