Tuesday, 27 November 2012 00:54

Online ad market slows, but modest growth continues


Despite a slowdown in the online advertising market in the third quarter this year, the market still managed growth of 10 percent year-on-year, according to a new market report.

The advertising industry publication Ad News, reports that, according to the Interactive Advertising Bureau (IAB), the online ad market defied the general trend of a sluggish ad environment.

Ad News cites an IAB/PricewaterhouseCoopers’ Online Advertising Expenditure Report showing the market was worth $813.2 million dollars in the three months to September, echoing Commercial Economic Advisory Service Australia (CEASA) figures released in September that the online market is now slated to overtake both newspaper and TV advertising spend in 2013.

The IAB says that general display advertising grew a narrow one percent in Q3 year-on-year fuelled by the automotive and finance categories while classifieds increased seven percent and search and directories advanced a healthy 15 percent in the three month period while still maintaining its dominant 53 percent share of online spend.

The report also reveals that growth in mobile advertising continues to skyrocket as it increased 190 percent YOY and 25 percent on the prior period to $22 million. Video advertising grew to $20.7 million from $18.5 million YOY while email advertising almost halved from $10.5 million to $5.8 million.

Ad News reports that the retail industry increased its investment in online advertising as the category’s share of expenditure grew to 7.2 percent from 6.5 percent on the prior period.

IAB chief executive Paul Fisher commented: “Double digital growth in the media and economic climate of the past 12 months bucks the trend across the broader media industry. While growth has slowed in digital this past quarter the outlook for the Christmas quarter looks encouraging.

“Our work as an industry to improve online behavourial advertising technology and deliver better audience and campaign measurement tools has resulted in more ‘brand’ focused advertising display formats and a clear and growing confidence in the medium by marketers.”

And, reports Ad News, PricewaterhouseCoopers partner Maria Martin said that “while the online advertising sector is settling into strong and sustained growth, it’s clear that the search by marketers for new ways to engage with consumers is fuelling mobile advertising growth rates.”


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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).



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