Thursday, 07 November 2013 00:08

Online video a standout in online advertising market growth


Australia’s online general advertising market has experienced ‘robust growth’, according to newly published research, which shows that video was the fastest growing type of online advertising with about 15% of general advertising revenues.

In its latest report on the Australian market, research firm Frost & Sullivan says online general advertising “grew a robust 12%” in the 12 months to the end of June this year to reach $862 million.

Frost & Sullivan says online  video  was  the  fastest growing type of online general advertising inventory,  accounting  for 15%  of  overall  online  general  advertising revenues,  up  from  11%  in  2012.  Social media accounted for 11% of the overall market, up from 9% last year.

According to the research firm, ad networks and the major online publishers lost market share, the latter by 2% compared to the previous year, although this segment still occupied the largest slice of the online general advertising revenue pie.

Frost & Sullivan forecasts Australia’s online general advertising market to grow at a CAGR of 12% to reach $1,493 million in 2018, and predicts that spending will grow across all online general advertising products, particularly online display and e-mail campaigns.

And, the online video advertising market is predicted to outperform  all  other  online general advertising segments, increasing  from  $133  million  in  2013 to $513 million in 2018, with its market share reaching 34% in 2018.

According to Phil Harpur, Senior Research Manager,  Australia  & New Zealand, Frost & Sullivan, several   online   publishers including  Fairfax  Media  and  Yahoo!7  are developing Data Management Platforms (DMPs).

“DMPs enable aggregation and analysis of subscription and transactional data, allowing better understanding of customers, and therefore, more effective targeting. As a consequence, a growing proportion of ads served on their networks are using more advanced targeting techniques, providing better market offerings from the perspective of online content and ad inventory creation, through more targeted customer engagement.”

Although challenged by larger publishers, Harpur says that the second tier online publishing market segment grew solidly over the last 12 months. And, he says, players such as Prime Media Group are pursuing strategies of becoming digital communities to reduce reliance on banner advertising. “Major online classifieds publishers like REA and Carsales are continuously strengthening their general advertising businesses outside of their online classified listings.”

Harpur  says  the  advent  of  ad  exchanges  into  the  online advertising ecosystem  has effected fundamental changes in the way agencies, publishers and  ad  networks  buy  and sell online ad inventory.

“This impact has been significant in the past 12 to 24 months, with the market for video ad buying progressing significantly over the last 12 months.  

“Media agencies buy  a  growing  proportion of their ads spots directly on ad exchanges via their own  Demand  Side  Platforms  (DSPs)  or trading desks, bypassing ad networks who  deal  with second  and third tier sites. Performance based advertising networks, in particular, are under pressure from the growing programmatic ad buying ecosystem,” Harpur said.

Frost  &  Sullivan’s  survey  of  online  advertising  buyers  across eight industry verticals found that about half achieved measurable ROI from their online  general  advertising  in  2013.  The research firm says growth  in  budget allocation was reported  across  all  types  of  online general advertising inventory, but particularly  in  online  display  and  e-newsletters  during  the prior 12 months.

According to Harpur, the migration from offline to online channels “is a substantial factor in the growth of the online advertising market.”

“Forty percent (40%) of advertisers  divert  funds  from  traditional  media  advertising, such as newspapers,  print  directories,  direct  mail,  TV, and radio, to increase online display advertising expenditure.”

Harpur also says that market  demand  is  strong  for  sponsorships, integrated site content and customised solutions  from  online  publishers, while bespoke executions such as sponsored  content  and  events  “garner  particularly  high  demand.”

“E-mail campaigns have proven  to  be  a  highly effective and efficient targeted response platform, and interest has resurged in EDM and e-newsletters over the  last  12  months.  The affiliate online advertising market has grown healthily during the 12 months, mainly amongst e-tailers in the retail sector with stronger adoption beginning to be observed amongst large bricks & mortar store chains as well,” Harpur concludes.

Subscribe to ITWIRE UPDATE Newsletter here

Now’s the Time for 400G Migration

The optical fibre community is anxiously awaiting the benefits that 400G capacity per wavelength will bring to existing and future fibre optic networks.

Nearly every business wants to leverage the latest in digital offerings to remain competitive in their respective markets and to provide support for fast and ever-increasing demands for data capacity. 400G is the answer.

Initial challenges are associated with supporting such project and upgrades to fulfil the promise of higher-capacity transport.

The foundation of optical networking infrastructure includes coherent optical transceivers and digital signal processing (DSP), mux/demux, ROADM, and optical amplifiers, all of which must be able to support 400G capacity.

With today’s proprietary power-hungry and high cost transceivers and DSP, how is migration to 400G networks going to be a viable option?

PacketLight's next-generation standardised solutions may be the answer. Click below to read the full article.


WEBINAR PROMOTION ON ITWIRE: It's all about webinars

These days our customers Advertising & Marketing campaigns are mainly focussed on webinars.

If you wish to promote a Webinar we recommend at least a 2 week campaign prior to your event.

The iTWire campaign will include extensive adverts on our News Site and prominent Newsletter promotion and Promotional News & Editorial.

This coupled with the new capabilities 5G brings opens up huge opportunities for both network operators and enterprise organisations.

We have a Webinar Business Booster Pack and other supportive programs.

We look forward to discussing your campaign goals with you.


Peter Dinham

Peter Dinham - an iTWire treasure is a mentor and coach who volunteers also a writer and much valued founding partner of iTWire. He is a 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).

Share News tips for the iTWire Journalists? Your tip will be anonymous




Guest Opinion

Guest Interviews

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News