The Australian Online Advertising Boom

The strong growth seen in the local online advertising business continues as recent market research reveals gains across all categories. The industry as a whole surpassed the $3 billion mark for the first time for the financial year ending June 30 this year.

The results, announced by IAB Australia in its Online Advertising Expenditure Report (OAER) compiled by PricewaterhouseCoopers (PwC), illustrates how total online advertising has increased 21 percent year-on-year, reaching $3.14 billion all told.

This year’s OAER included a new measure, with data collected from industry participants being combined with estimates for Google display, video and mobile advertising as well as Facebook display advertising.

OAER Highlights:

  • Search and Directories advertising increased 30% year-on-year
  • General Display advertising increased 15%
  • Mobile advertising grew 212%, to reach a total of $47.5 million
  • Mobile advertising expenditure was split between smartphone-specific (67.7%) and tablet-specific (32.3%)

“This report captures the truest picture of the online advertising industry in Australia with the inclusion of methodological estimates for Google and Facebook, and the inclusion of mobile advertising,” says Paul Fisher, CEO of IAB Australia. “The total advertising expenditure exceeding $3 billion is on track with our forecasts and trends and we expect online advertising will surpass free TV in calendar year 2013 and print in FY1314.”

Of course, the ‘new methodologies’ included in this report may in fact account for some of the overall increase in figures, however the continued evolution of digital marketing requires this kinds of research update as a necessity. To offset these updates, comparative data for the period from September 2010 was restated to reflect methodological changes.

Maria Martin, a Partner at PwC highlights the need for new measuring methods.

“With the continuing explosion in online and mobile we thought it was essential to include an estimate of advertising revenue for Google and Facebook, together with mobile advertising expenditures, to provide what we believe is now the most accurate data capture of the Australian online and mobile advertising market.”

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