Australian online advertising expenditure has reached a record high, posting $571.75 million for Q3 2010, according to the PwC and IAB Australia’s Online Advertising Expenditure Report.
The Interactive Advertising Bureau (IAB) reported that the total online advertising expenditure in Australia has experienced strong growth, posting a record quarter of $571.75 million (for the three months ending 30 September 2010), an increase of 3% (or $19.25 million) on the quarter ended 30 June 2010.
The results which were released as a part of the IAB Australia’s Online Advertising Expenditure Report (OAER) compiled by PricewaterhouseCoopers Australia, recorded an increase of $105.5 million, representing a comparable 23% year-on-year growth from 2009.
Paul Fisher, CEO of the IAB Australia, said “Feedback from media agencies and advertisers indicates a continued and growing confidence in the online channel as an effective medium to reach, engage and influence consumers, and these expenditure figures demonstrate that investment is indeed following consumer behaviour – online.”
General display advertising and classifieds advertising accounted for 26.5% and 24.6% respectively of the total advertising expenditure, while search and directories advertising comprised the remaining 48.9%.
Within general display, based on the submissions received for the report, email-based advertising comprised $7.6 million of advertising expenditure, while video based advertising comprised $8.4 million of advertising expenditure, slightly down from the previous quarter.
Quoted by Smart Company, Fisher “pins video advertising as the next big growth market” and iterates that “businesses should consider moving advertising dollars into such a high-growth area”.
CPM based pricing remained the dominant expenditure type making up 75% of advertising expenditure, with only 25% spent on a direct response basis.
“Online advertising is still in an aggressive growth cycle and the signs for continued double digit growth for many quarters to come are strong. As we head into the lead up to Christmas and the strongest retail period of the year, advertisers will continue to leverage the power of online advertising to influence consumer’s Christmas purchase choices,” affirmed Fisher.