IAB Australia Online Advertising Expenditure Report reveals the online advertising industry is on a clear trajectory to surpass $3 billion in 2012, with an ever increasing contribution from the retail industry.
The latest Interactive Advertising Bureau (IAB) Australia Online Advertising Expenditure Report (OAER), which is compiled by PricewaterhouseCoopers, revealed online advertising expenditure reached $2.26 billion in 2010, which was a 21% year-on-year increase – with retail named among one of the biggest growth sectors.
The research indicated that the increase has been due to growth experienced in all categories, with a 24% increase in Classifieds advertising, a 22% increase in General Display advertising and a 19% increase in Search and Directories advertising from 2009.
Video based advertising continued to strongly increase, with an 83% year-on-year growth – the total ad-spend for video advertising in 2010 was $33.4 million.
According to Paul Fisher, CEO of IAB Australia, “Consumers’ voracious appetite for content, services, social connection, search and video online is growing dramatically every year, with Australians watching almost 1 billion videos online each month. As a result we are experiencing a structural shift in Australia and globally in the advertising and marketing industry as advertisers and agencies restructure their organizations and their budgets to better equip themselves to reach, engage and influence their customers online.
“Continued strong year-on-year growth, as well as record quarters, places the industry on a clear trajectory to surpass the $3 billion milestone by the end of 2012,” he said.
Six key industry sectors drove the growth in general display during the last quarter of 2010, with retail experiencing the largest percentage growth increase (66%). Together these six sectors were responsible for an increase in their online advertising spend of over $86 million for the full year:
- Motor Vehicle Industry – up $21.5m (35% growth)
- Finance – up $19.2m (20% growth)
- Retail – up $11.9m (66% growth)
- Health / Beauty / Pharmaceuticals – up $8.4m (37% growth)
- Government – up $8.2m (40% growth)
- Entertainment and Leisure – up $8.1m (21 percent growth)