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Display ads are popular again in Australia

With so much focus on mobile and social media marketing, the original superstar of digital advertising the Display had lost its gleam in the Australian online advertising world till recently. The recent Online Advertising Expenditure Report (OAER) compiled by PricewaterhouseCoopers (PwC) for IAB Australia has a different story to tell. The report shows that the display ads alone grew 18 percent year on year. The total online advertising increased 19 percent year on year, with revenues for Q1 ending March 31, 2012 reaching $713 million, an increase of $111.9 million from Q1 2011. This is highest ever year on year growth in online advertising since 2008.

Paul Fisher, CEO of IAB Australia said, “The continued growth of online reflects the strengthening confidence of marketers and agencies that online is their medium of choice.  In this challenging economic environment they look to online to provide measurability, reach, frequency, brand and direct response messaging – and they aren’t being disappointed. There is no doubt that online advertising in on track to surpass $3billion and 20 percent share of all advertising this calendar year, and it’s quite possible that we’ll reach that milestone this financial year thanks to increased consumer confidence sparked by further interest rate cuts which we believe will support continued growth in online advertising in key sectors.”

Meanwhile, IAB Australia has announced that in 2012, it will be releasing online video measurement data, delivering localised global standards, guidelines and best practices, along with new research, cases studies and new advertising formats to accelerate the shift in brand advertising online. “We’ll be working hard this year, as always to ensure that advertisers and agencies alike are armed with all the information, insights and tools they need to increase online in their advertising mix,” added Fisher.

The report shows that all three categories experienced strong year on year growth, with display advertising recording 18 percent growth to account for 21.6 percent of total revenue in Q1 2012. Within the category, the FMCG sector posted significant year on year growth as brands looked to reach, engage and influence grocery buyers online.  Video also reported strong year on year growth to reach $11.6m for Q1 2012.  CPM based pricing continued as the dominant expenditure type with 74 per cent of advertising expenditure and 26 per cent on a Direct Response basis.

“The retail and government sector online spend continues to flat-line which is surprising considering both are facing tough marketing and communications conditions.  There is a real opportunity for these sectors to invest their advertising budgets online where they will reach, engage and influence their audiences most effectively and we’ll be working hard through this year to help them understand the potential that online offers them,” informed Fisher.

Other aspects of online advertising also showed strong growth; where search and directories continued to dominate the overall sector with 21.4 percent year on year to account for 55.5 percent of the total online advertising expenditure. Its share in the online space grew to $395.7 million. Classifieds sector also showed a good increase as the ads migrated from other media to online to account for 22.9 percent at 13 percent year on year. This growth was fuelled by ads from industry segments like real estate, automotive and recruitment companies

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