Video and mobile advertising tipped to increase, traditional online inventory to decline

The online advertising market in Australia is predicted to grow to an annual value of over $1 billion in 2016, according to a market report, with video ads and rich media tipped to have the highest growth and demand for traditional online inventory such as display ads and EDMs to decline.  

Phil Harpur senior research manager Australia/New Zealand at Frost & Sullivan, the company behind the research, said the increased presence of online video streaming and growth in mobile advertising will drive the trend for rich media advertising in Australia.

“Right now Australian mobile advertising expenditure is low compared to the UK and the USA, despite the fact that Australia’s smartphone penetration is now roughly on par with those markets. But, this is already starting to change and we anticipate rapid growth as mobile advertising, driven by further adoption of smartphones and strong growth in Tablet PCs, gains more acceptance amongst advertising agencies as a crucial part of the overall advertising mix”, he said.

From the 12 months to June 2011, online ad spend increased by 11.9% to a value of $635 million, not including mobile advertising, according to the 2011 Australian Online General and Mobile Advertising Market Report.

The mobile advertising market grew by about 26% and was valued at $13.9 million. It is anticipated to grow to a value of $82 million over the next five years. Of the 240 senior management executives surveyed, more than 60% said they plan to increase their mobile ad budgets next year.

Ninemsn, Fairfax Media, Yahoo!7 and News Digital Media were the publishers with the biggest share of online advertising however social media publishers increased their share to 7% of the total ad share market. Facebook holds 6% of the total online ad share and YouTube has 4%.


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