Australia's online advertising market has recorded continued growth, in a most challenging economic period, according to figures released this week by the Interactive Advertsing Bureau (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, totaling $466 million.
Overall Q3 activity showed an increase of three per cent from Q3 2008. Search and Directories accounted for 51 perc ent of the total advertising expenditure in the third quarter of 2009, while General Display accounted for 26 per cent and Classifieds 23 per cent. Search and Directories grew 12 per cent for Q3 year on year; while General Display declined 3.8 per cent and Classifieds declined 5 per cent.
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 per cent 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 perc ent of General Display.
"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 per cent 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.
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