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Online adspend grows, but feels the pain in recruitment

Even online’s growth has been slowed by the media recession, new figures from across the industry suggest, with classified ads under particular pressure.  

According to the Interactive Advertising Bureau report, which covers to the end of June:

  • The total online advertising market grew by 19% year-on-year from $1.5bn to $1.8bn
  • But the online market grew by only 9% compared to the same quarter a year before
  • Online classified ads only saw annual growth of 6% to $431m
  • Online classified ads fell be 6% compared to the same quarter a year before
  • Search & directories were down 1% compared to the previous quarter
  • For the last 12 months, online display ads were worth $491m; classifieds $431m; search & directories $884m

Financial advertising is the single biggest sector, making up 20.5% of online ads in the last quarter, up from 19.1%.

Computers and communications had the biggest jump, up from 12.4% to 16.6% of online adspend.

The drop in spending on recruitment was among the most dramatic – down from $3.8m in the second quarter of 2008 to $1.7m in the second quarter of 2009.

Recruitment made up just under 1.4% of online adspend in the last quarter compared to more than 5% three years ago.

The figures are compiled by PricewaterhouseCoopers for the IAB. Although most of Australia’s major online players take part in providing the tracking survey with data, Google does not.

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