AU online ad market grew 16% in 2013

CRM Innovation editors
23 Jan 2014

Australia's advertising revenue continues to shift away from traditional media and towards the online channels.

Research firm Frost & Sullivan said the Australian online advertising market grew 16% in 2013, reaching $3.74 billion or 27% of the total advertising expenditure. In contrast, advertising expenditure in all media reached $13.9 billion or a modest growth of only 1.4%.

Traditional media channels include print, TV, outdoor and radio advertising.

“Online advertising expenditure is forecast to significantly outperform the more mature offline advertising channels (free-to-air TV, pay TV, radio, magazines, outdoor, cinema and print directories) over the next five years, with a compound annual growth rate of 12%, increasing to $6.59 billion, its proportion accounting for 41% of the total advertising market in 2018,” said Phil Harpur, Senior Research Manager, Australia & New Zealand ICT Practice, Frost & Sullivan.

“Strong increases in spending intentions for 2014 are predicted by advertisers across all online general advertising products, in particular for online display and e-mail campaigns.”

Of the main segments of the online advertising sector - online classifieds, search, directories, and general advertising (online display, email marketing, integrated site content and online video, search advertising grew 23% in 2013, online general advertising 12%, online classifieds 11% and online directories just 4%.

“From 2013 to 2018, the search market is expected to continue to outperform the other three major segments (online classifieds, online general and online directories), growing at a CAGR of 16%, its proportion of the total online search and directories market increasing from 83% in 2013 to 91% in 2018," Harpur said.

The fastest growing segments in the Australian online advertising market are mobile and online video, with both segments expected to outperform the market significantly over the next five years

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