Online ad spend soars 20%

By By Wenlei Ma | 7 November 2011
IAB chief executive, Paul Fisher.

The Australian online advertising market saw a 20% year-on-year increase in the third quarter to $688 million, as video advertising continues to skyrocket.

Search and directories had the lion's share of spend with 52.7% and increased 30%. General display advertising accounted for 23.9% of expenditure and grew 8% while classifieds made up 23.4% of spend and increased 15%.

The data, compiled by Pricewaterhouse Coopers, shows the market has grown in the third quarter (ending 30 September) for the ninth consecutive time since 2002, when data began to be collected. With general display, video advertising grew 43% to $12 million while email-based marketing had an increase of 38% to $10.5 million.

Finance, computers and communications and motor vehicles accounted for 40.7% of general display advertising spend, slightly down year-on-year from 44.3%.

IAB chief executive, Paul Fisher, said: "The recent CEASA figures for all media advertising expenditure for the six months to 30 June 2011 also showed the interactive advertising share of total media has grown to 19 percent. Both the PwC and CEASA data reflect the accelerating confidence in interactive advertising by media agencies and advertisers as they continue to shift their budgets into digital media.

"This shift is expected to increase further as the full impact of the IAB Australia recently-endorsed Nielsen Online Ratings online audience measurement methodology is published to the market."

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