Online Advertising posts highest quarter ever – $466 million
9 November 2009: Australia’s online advertising market has recorded continued growth in the most challenging economic period to impact the Australian media industry in decades, according to figures released today by IAB Australia in its Online Advertising Expenditure Report (OAER). The Report, which is compiled by PricewaterhouseCoopers (PwC), showed that online advertising expenditure in Australia for the quarter ending 30 September 2009 was the highest ever recorded, totalling $466 million.
Overall Q3 activity showed an increase of three percent from Q3 2008. Search and Directories accounted for 51 percent of the total advertising expenditure in the third quarter of 2009, while General Display accounted for 26 percent and Classifieds 23 percent. Search and Directories grew 12 percent for Q3 year on year; while General Display declined 3.8 percent and Classifieds declined 5 percent.
For the first time, the PWC Report also captured the online advertising expenditure within the General Display category for video, email and also so-called CPM (cost per thousand, often referred to as ‘brand’) and direct response (often referred to as ‘performance’) advertising, and a hybrid model combining both pricing models.
Online video advertising which represented 4 percent of the General Display category, is on par with the US and UK, and is expected to increase sharply in future quarters. Email advertising was 6.5 percent of General Display.
CPM advertising made up 75 percent of the general display category, with only 22 percent reported for response and 3 percent for hybrid.
“In the context of the recorded double digit decline of the Australian advertising market in recent quarters, the continued growth of the online advertising industry shows remarkable resilience,” said Paul Fisher, CEO of IAB Australia. “Online advertising is gaining a greater share of the $13 billion Australian advertising industry as marketers and their agencies continue to invest their advertising budgets where they have the most confidence.”
“This result should also be considered in light of the online advertising expenditure recorded for the 2008 Olympics in the corresponding quarter last year, particularly in the general display category.
“With continued industry developments in online audience measurement, research demonstrating the effectiveness of online advertising in influencing consumers’ purchasing decisions and behaviours, and maturing self-regulatory standards and best practice guidelines, online is now a trusted, core and essential component of effective marketing communications.”
Finance, Computers & Communications and Motor Vehicles sectors continue to be the dominant industries using General Display advertising, and comprise 42 percent of the General Display spending. Positive growth was recorded in the FMCG, Retail, Government and Health, Beauty and pharmaceuticals industry sectors as more advertisers increase their advertising investment into online.
The Q3 2009 IAB Online Advertising Expenditure Report covers more than 1,000 websites. An executive summary of the Report is available on the IAB Australia website. The full report is made available to IAB Australia members only.
About the Interactive Advertising Bureau
The Interactive Advertising Bureau (IAB) is the peak trade association for online advertising in Australia. As one of over 25 IAB offices globally, and with a rapidly growing membership, IAB Australia’s principal objective is to increase the share of advertising and marketing dollars that interactive media captures in the marketplace.
Officially launched in October 2005 by Australia’s six major online publishers - News Digital Media, Fairfax Digital, ninemsn, Yahoo!7, Google and Sensis Media Smart - together with the Australian Interactive Media Industry Association (AIMIA), the IAB has four objectives:
• To develop, coordinate and promote industry standards and guidelines that make interactive advertising a simpler and more attractive medium for agencies, advertisers and marketers
• To prove and promote the effectiveness of interactive advertising to advertisers, agencies, marketers, and the press
• To be the primary advocate for the interactive marketing and advertising industry
• To expand the breadth and depth of IAB membership while increasing direct value to members
For further information about IAB Australia please visit: www.iabaustralia.com.au
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