The Interactive Advertising Bureau (IAB) has released the latest quarterly ad-spend report which has shown that online ad-spend is down 5 per cent in the first three months to March 2009, however growth is up 14 per cent year-on-year.
Online classified spend took a hit for the first time, down slightly from $107m to $105m compared to the same time last year, said the report conducted by PricewaterhouseCoopers for the IAB.
The biggest quarter-on-quarter drop was in the general display market which fell by 16 per cent in the first quarter of 2009 to $110 million, it grew by 16per cent year-on-year.
“Much will be made of the decline in revenues in Q4, but it’s important to note that historically Q1 online advertising revenue is always either flat or lower than Q4 in the online advertising industry,” said IAB chief executive Paul Fisher.
“Continued economic pressure on some of the key advertising industry sectors notably automotive, financial services, travel, and in the classifieds sector real estate, employment and automotive, resulted in these sectors dampening the previous rate of growth in the industry.
“However, as the online advertising industry develops new and improved audience measurement metrics and methodologies, more standards and guidelines specifically for the Australian market, and Australian based research and case studies, the industry is well placed to continue its strong, double digit growth for many quarters to come, especially when the Australian advertising industry begins its recovery from the current downturn,” said Fisher.
PwC lead partner for technology, entertainment and media, David Wiadrowski said: “The impact of the economic slowdown has strongly impacted the Classified market during the quarter, with the first decrease in year-on-year expenditure seen since record keeping commenced in 2002. The decrease in the General Display market from the previous quarter was to be expected, with the decrease showing a similar result to the trend of previous years."
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