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Online advertising set to speed past newspaper and TV in 2013


Online advertising has continued to grow, achieving 10% year on year growth recording $813.25m for the three months ending September 2012.

The results show that while the general advertising market is softening, online advertising is firmly on track to speed past both newspaper and TV advertising in 2013. They were announced on Monday 26th November by IAB Australia in its Online Advertising Expenditure Report (OAER) compiled by PricewaterhouseCoopers (PwC)

When compared to the September 2011 quarter, all three reported sectors grew, with General Display marginally up 1%, Search and Directories up 15%, and Classifieds advertising up by 7%.

Paul Fisher, CEO IAB Australia commented, “Double digit growth in the media and economic climate of the past 12 months bucks the trend across the broader media industry.  While growth has slowed in digital this past quarter the outlook for the Christmas quarter looks encouraging.”

“Our work as an industry to improve online behavioural advertising technology and deliver better audience and campaign measurement tools has resulted in more ‘brand’ focused online advertising display formats and a clear and growing confidence in the medium by marketers,” said Fisher.

Maria Martin, Partner at PWC said, “While the online advertising sector is settling into strong and sustained growth, it’s clear that the search by marketers for new ways to engage with consumers is fueling mobile advertising growth rates.”

Search and directories continues to dominate the online advertising sector overall with 53% share of spend. Classifieds holds 21% share and General Display 26% market share.

Within General Display, the motor vehicle category grew strongly to be the highest spending in the advertising industry this quarter, with finance and real estate sectors the next largest categories.  Retail share of expenditure reached 7.2% share, up from 6.5% in the previous quarter. In Classifieds, real estate, recruitment and automotive were the leading categories.  This is the same order as the prior quarter.

The report is the second to be prepared under the ‘new approach’ introduced in the June 2012 report.  This new approach means data collected from industry participants has been supplemented by estimates for Google display, video and mobile advertising as well as Facebook display and mobile advertising; while the prior methodology for estimating Google search has been refined.

Historical mobile advertising data collected from industry participants has been combined with estimated Google mobile advertising to provide a picture of the aggregated mobile advertising market and trends.

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