Online advertisement market to pass $3 billion
Australia’s online advertisement market is set to top $3 billion in annual worth after the sector experienced a boom in value in the year to 30 June, according to a report published by IAB Australia.
IAB’s Online Advertising Expenditure Report (OAER), compiled by PricewaterhouseCoopers (PwC) shows the sector grew 20 per cent, totalling a value of $2.455 billion.
The report, to be presented in a number of keynote speeches in Melbourne and Sydney this week, finds that search and directories and online classifieds were the main contributors to growth, which grew to reach $1.264 billion and $579 million respectively.
Video advertising also grew 53 per cent, nearly reaching $40 million.
"Further growth is expected in this sector, with current expenditure representing just 6.5 percent of online display advertising in comparison to the 14 percent market share it holds in the US,” the report reads.
As was expected, online retail growth was the standout area of internet advertising on the back of a booming sales trend.
"Despite, or perhaps because of the many reported challenges facing the industry, the retail sector has shown strong growth in online advertising in the past year. However the sector accounted for only just six percent of all display advertising,” IAB CEO Paul Fisher told ITWire.
The report by IAB comes after Google commissioned consultancy group Deloitte Access Economics to conduct an evaluation of the Internet’s worth to the Australian economy. Deloitte found that in terms of direct and indirect contribution, the Internet contributes $130 billion to the Australian economy.
IAB will be presenting the findings in its Online Ad Ex Report Presentation. The Event details are as following:
SYD: 16th August/ MEL: 18th August
SYD: 8:30-10am/ MEL: 9.30-11am
SYD: PwC, Darling Park Tower 2, 201 Sussex Street, Sydney
MEL: PwC, Lvl 19, Freshwater Place, 2 Southbank Bd, Southbank
More information is available here