|Online advertising revenue will account for 25 per cent of the total advertising market by 2014, according to a recent research report.
Overall online advertising expenditure will tip $3.6 billion in 2014, and will fall just shy of $4 billion by the end of 2015.
Frost & Sullivan Australia and New Zealand senior research manager Phil Harpur told an audience at a conference this morning that growth will continue to be driven by directories, search, display and classifieds. However, he also said that the market will see exponential growth in video and mobile advertising.
As of 2010, online video advertising revenue reached the $35 million mark, but is predicted to grow to $180 million by 2015, at an average growth rate of 39 per cent per year.
Harpur commented to AdNews: "The growth in online video will be driven by better online technology and improved broadband speeds. At the moment the market is still constrained by slow download speeds."
Meanwhile, mobile advertising is also predicted to grow from a small base of $9.9 million in 2010, to $46.4 million in 2015.
"Australia is still constrained by a low penetration of smartphones, a lack of rich media ad serving functionality and a lack of sites designed specifically for mobile."
Additionally, it has been predicted that social media sites will win a significantly enhanced share of advertising dollars, particularly as smartphone penetration increases.
As reported in Publishing Edge, the Interactive Advertising Bureau (IAB) of Australia released similar predictions from Pricewaterhouse Coopers, stating that the online market will break the $3 billion barrier by the end of 2012, with growth of 15.5 per cent in 2011 and 14.3 per cent in 2012.
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