Published on the 17/09/2012 | Written by Newsdesk
Online advertising expenditure has surpassed newspaper advertising expenditure for the first time ever, according to a report from the Commercial Economic Advisory Service Australia…
The report shows online advertising has exceeded newspaper advertising for the six months to 30 June 2012, noting $1.63 billion was spent on online advertising in the first half of 2012, second only to Free to Air television which reported a spend of $1.65 billion, and $1.5 billion spent on newspaper advertising.
The CEASA report, which sources its advertising expenditure data from the main media directly, also noted that online advertising’s share of the total advertising market has now increased to 24.2 per cent for the six months to 30 June 2012. Free TV’s market share was 24.4 per cent and, newspapers 21.6 per cent. Online advertising’s share of total advertising was 18.5 per cent in the previous year.
Whilst the total advertising market of $6.745 billion for the 6 months to 30 June 2012 reported by CEASA decreased by 0.4 per cent on the same period in 2011, online advertising grew by 30 per cent. The IAB/PwC Online Advertising Expenditure Reports had only recorded growth of 24 per cent for the comparable periods due to the inclusion in report of estimations for Google and Facebook, as well as actual mobile advertising data for the first time.
Paul Fisher, CEO of IAB Australia said, “The speed of growth in online advertising has been stronger than even our own forecasts. The advertising market is tough right now, and in this climate of scrutiny and demand for results, measurement and accountability, advertisers and media agencies are accelerating their shift to online to achieve their marketing goals. The explosive growth in media consumption online across a myriad of devices is the key driver of this investment, reflecting the old advertising adage of ‘the dollars follow the eyeballs’.
Fisher says that improvements in factors such as online audience and campaign measurement, development and implementation of standards, guidelines and best practice, and improved ad formats online for brands “will see online advertising continue to outpace the market and eventually TV advertising expenditure in 2013”.
“This will make online the leading advertising medium in Australia, a status currently only achieved in the UK, Denmark and the Netherlands.”
