Monday, 17 September 2012 08:26

Online advertising overtakes print Featured


Online advertising expenditure in Australia has overtaken that in newspapers for the first time, according to a new report.

The report from the Commercial Economic Advisory Service Australia (CEASA) says that online advertising has exceeded newspaper advertising for the first time. The report says $1.63 billion was spent on online advertising in the first half of 2012, second only to free to air (FTA) television, which reported a spend of $1.65 billion. Just $1.5 billion was spent on newspaper advertising.

CEASA sources its advertising expenditure data directly from media spend. The figures means that FTA TV, online and newspapers now each have about one quarter of the advertising market, with the rest split between radio, pay TV, outdoor, and the like.

Online advertising’s share of the total Australian advertising market in the six months to 30 June 2012 was 24.2 percent for. Free TV’s market share was 24.4 percent and, newspapers 21.6 percent. Online advertising’s share of the total advertising market was just 18.5 percent in the previous year.

The report estimates the total advertising market in Australia for the six months to 30 June 2012 at of $6.745 billion, a decreased of 0.4 percent on the same period in 2011. But in this period online advertising grew by 30 percent. Previous reports from IAB (Interactive Advertising Bureau) and PricewaterhouseCoopers had recorded growth of only 24 percent for the comparable periods, but they did not include advertising on Google or Facebook.

Paul Fisher, CEO of IAB Australia said the speed of growth in online advertising was even stronger than IAB forecasts. “The advertising market is tough right now, and in this climate of scrutiny and demand for results, measurement and accountability, advertisers and media agencies are accelerating their shift to online to achieve their marketing goals.

“The explosive growth in media consumption online across a myriad of devices is the key driver of this investment, reflecting the old advertising adage of ‘the dollars follow the eyeballs’,” said Fisher.

“IAB and the broader industry are working hard to improve online audience and campaign measurement, develop and implement the infrastructure of standards, guidelines and best practice, offering more compelling ad formats online for brands. These factors will see online advertising continue to outpace the market and eventually TV advertising expenditure in 2013. This will make online the leading advertising medium in Australia, a status currently only achieved in the UK, Denmark and the Netherlands.”

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Graeme Philipson

Graeme Philipson is senior associate editor at iTWire. He is one of Australia’s longest serving and most experienced IT journalists. He is author of the only definitive history of the Australian IT industry, ‘A Vision Splendid: The History of Australian Computing.’

He has been in the high tech industry for more than 30 years, most of that time as a market researcher, analyst and journalist. He was founding editor of MIS magazine, and is a former editor of Computerworld Australia. He was a research director for Gartner Asia Pacific and research manager for the Yankee Group Australia. He was a long time weekly IT columnist in The Age and The Sydney Morning Herald, and is a recipient of the Kester Award for lifetime achievement in IT journalism.

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