SYDNEY: Online advertising expenditure has grown by 17% year on year to total $512.5 million in the first quarter of 2010, according to the IAB's Online Advertising Expenditure Report.
The report, compiled by PricewaterhouseCoopers, found year on year increases for Classifieds at 16% growth, Search & Directories advertising up 18% and General Display up 15% on the corresponding period in 2009.
However, the report revealed zero growth in expenditure for this quarter compared to the previous one - with Classifieds and Search & Directories up
9.4% and 2.0% respectively in Q1 2010, while General Display declined by 11.1%,
compared to Q4 2009.
IAB chief Paul Fisher attributed the results to seasonality and said the first quarter of a calendar year traditionally records negative or unchanged results.
"To match the results of the previous quarter this time around is an outstanding result," he said. "Comparing quarters is apples and oranges - unlike year on year, it's just not a true comparison".
Fisher is still optimistic online advertising expenditure will pass $2 billion by the end of this financial year. "Short of a double-dip recession, the industry is well placed to continue to grow in all three sectors," he said. "We've been saying for years that media buyers need to engage consumers online and the latest results reflect marketers’ increasing confidence in the medium".
Fisher said FMCGs and retailers are shifting advertising spend to online. "Metro papers and free-to-air TV are experiencing the biggest decline in revenue and that's where money for online advertising is coming from," he said.
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