Digital advertising to be bigger than TV & newspapers by 2014

Stuart Corner
Thursday, 03 February 2011 15:15

IT Industry - Market

Digital advertising expenditure is predicted to overtake TV and newspaper advertising in Australia within three years.

Paul Fisher, CEO of IAB Australia, told the Future of Digital Advertising Summit conference in Sydney this week: "Online will very quickly become the number one advertising channel by volume and by share, overtaking television and newspapers. There are only two other countries where that has happened: the UK and Denmark.

"Australia is a very fast growing economy for digital advertising: it is growing faster than the global market and faster than Asia Pacific."

He told the audience: "We are going to move very heavily into a world where media planning and buying for advertising and for measurement is not about digital as a silo as it has been for the last 10 or 15 years. It is now going to be now very much in comparison with TV and newspapers."

He added: "Global marketers with multibillion dollar budgets are not moving into digital because they think it is sexy'¦The single reason driving online advertising growth is consumer behaviour: people are spending huge amounts of time online."

Fisher cited forecasts from PricewaterhouseCoopers that put the CAGR for the digital advertising marketing in Australia growing at an average of 14.2 percent between now and 2014, compared to 13.7 percent for Asia Pacific and 10.6 percent globally.

For Australia, PWC is forecasting TV advertising to grow at an average of 1.9 percent to 2014 to reach $3.808b, newspaper advertising to grow at 3.9 percent to reach $3.811b and Internet advertising to grow at 15.4 percent to reach $3.854b.

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