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Australian Online Advertising Market Outlook
Phil Harpur, Senior Research ManagerDigital Media, Australia
27th January 2012
Focus Points
1. Overall Online Advertising Market Overview
2. Online Classifieds Market
3. Online General Advertising Market
4. Online Mobile Advertising Market
5. Search and Online Directories Market
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Overall Online Advertising Market Overview
The structural shift in the media industry continues, as advertising dollars move away from traditional media such as print, to the Internet and mobile channels.
By the end of 2011, the 2012 economic outlook for Europe remains poor, and this is likely to have repercussions on all market segments in Australia including the media and online media sectors in 2012.
Of the main segments of the online advertising sector, search advertising had the strongest growth during FY2011 of 28%, followed by online classifieds (20%), and online general advertising (12%), whilst online directories displayed the weakest growth (7%).
The Compound Annual Growth Rate (CAGR) from 2011 to 2016 for the total online advertising market is predicted by Frost & Sullivan to be 12%, and the search market, with a CAGR of 16% is expected to continue outperforming the other major categories.
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Online Classifieds Market
Overall revenue growth during FY2011 was 20% for the overall Australian classifieds market, as compared to 13% growth in FY2010.
Annual Growth in employment classifieds was 19% in FY2011 as compared to -3% during FY2010.
Both the real estate (21%) and the automotive (21%) online classifieds segments continued their strong growth throughout FY2011.
The CAGR of the total online classifieds market between 2011 and 2016 is predicted to be 9%, and by 2016 the annual growth is predicted to drop to just 6%.
A strong mobile channel offering is becoming increasingly important for online classifieds players as audiences fragment across multiple platforms and a growing proportion of users are accessing the internet via mobile devices.
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Online General Advertising Market
The online general advertising market in Australia grew 11.9% during the 12 months to June 2011, with expenditure totaling $635 million.
Growth rates from the mature inventory segments - online display, advertorials, integrated site content, sponsorships and EDM/e-newsletters - will decline in later years.
Very strong growth rates are predicted from the online video market.
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Mobile Advertising Market Trends
The Australian mobile advertising expenditure rose steadily to reach $13.9 million, but the market has not gained the high level of traction that was anticipated a few years ago.
Major restraints include: Lack of locally available mobile sites Under-utilisation of consumer targeting Lack of rich media ad-serving functionality
But many of these issues are now outweighed by positive drivers such as: Rising smartphone penetration, Increased data caps on standard mobile plans, Increasing amounts of mobile content
The market is expected to grow at a compound annual rate of 43 percent over the next five years, leading to a total market value of $82 million by 2016.
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Search and Online Directories Market
The search market is expected to grow at a Compound Annual Growth Rate (CAGR) of 16% between 2011 and 2016, whilst the online directories market is expected to grow at a CAGR of 6%.
The proportion of the total online search and directories market accounted for by search is predicted to increase from 76% in 2011 to 83% in 2016.
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Frost & Sullivan 2012 Australian Digital Media Program
1) The Australian Online Classifieds Market
2) The Australian & New Zealand Online Shopping Market
3) Australian Mobile Device Usage Trends
4) The Australian Online Video Market
5) The Australian Online General and Mobile Advertising Market
6) The Australian Online Search and Directories Market
7) Australian Online Advertising Market – Year End Overview and Outlook
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http://www.facebook.com/FrostandSullivan
http://www.linkedin.com/companies/4506
http://www.slideshare.net/FrostandSullivan
http://twitter.com/frost_sullivan
Presenter details
For any other enquiries, email us: [email protected]
Phil Harpur has over 15 years of technology research experience as a Market Analyst and a Research Consultant, having worked on research programs across North America, Asia Pacific Australia & New Zealand. He has particular expertise in:
• Qualitative analysis on industry and emerging trends• Quantitative analysis, market sizing and forecasting• Customer analysis and segmentation; competitive strategy
He has an experience base covering a broad range of ICT & Digital Media sectors, producing high-level competitive market intelligence research with particular expertise in:
• Digital Media - online advertising, e-commerce, social media, online video• Digital Content & Convergence• Telecommunications - mobile; infrastructure, broadband access & VoIP
He has wide experience presenting at industry events and is regularly quoted in the press.
Phil HarpurSenior Research Manager
Frost & SullivanAustralia and New Zealand
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Contact
Donna JeremiahCorporate Communications Asia [email protected]
Phil HarpurSenior Research ManagerDigital MediaAsia Pacific [email protected]
Carrie LowCorporate CommunicationsAsia [email protected]
