Monday, 16 August 2010

Online advertising passes $2bn mark in Australia

The latest quarterly figures published by the Interactive Advertising Bureau (IAB) in Australia mark another milestone as the $2 billion barrier has now been passed by online advertising expenditure over the past 12 months. Using data compiled by PricewaterhouseCoopers (PwC), total expenditure of $2.043 billion is shown for the 12 months ended 30 June 2010.

The latest report also shows that online advertising expenditure reached $552.5m in the past quarter (April-June) of 2010, which is another record quarter and a 22% increase on the same period in 2009.

Looking at the yearly figures, all three of the categorised sectors of the market saw growth in the past 12 months, with general display advertising increasing by 11%, classified advertising by 9% and search and directories advertising seeing the highest growth rates again with an increase of 16%. For the past financial year, general display advertising accounted for 26.8% of the total online expenditure, with classifieds reaching a 23% share and search and directories advertising taking the majority share at 50.2%.

Some other categories covered by the report show that email based advertising reached $33.8m during the past 12 months and video based advertising comprised $25.3m of advertising expenditure. In the past quarter, spend in this category was up to $9.6 million from $5.7 million in the previous quarter (Jan-March 2010). The dominant pricing method is still Cost per Thousand (CPM), with 75% of general display advertising based on CPM while direct response accounts for just 25% for the past year, however year on year comparative data is not yet available for these two advertising sectors.

Although these figures are impressive and continue to demonstrate the strong growth area of online advertising compared to other forms of advertising expenditure, the quarterly report still lacks accurate data from some of the main sectors - notably Google, who refuse to provide their income data from search and video advertising, so that this remains an estimated figure. Also Facebook does not participate in the survey so this growing area of advertising is also an estimated figure in the overall results.

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