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Mobile advertising zooms at 212% growth rate

It seems that campaigns-over-mobile is the choice of promotion for brands for the last one year. For the total online advertising expenditure for mobile advertising for the 12 months ended 30 June 2012 was USD 47.5million, with growth of 212 percent. This was recently announced by IAB Australia in its Online Advertising Expenditure Report (OAER). It was also the first time that data for mobile advertising was added in the report, marking the growing importance of mobile in online media planning.

Talking about this exponential growth, Paul Fisher, CEO, IAB Australia said, “As marketers and media buyers seek to reach, engage and influence fragmenting audiences in a challenging economic environment, this data should underpin their budgetary decisions to grow their investment in online advertising. The growth in mobile advertising over the past 6 quarters shows that for a minor investment relative to TV, print and other media spends, marketers can add mobile audience reach and executions to their online search and display campaigns.”

In fact smart phones have emerged as the device of choice for marketers in Australia as smartphone advertising accounted for 67.7 percent, while tablet advertising accounted for 32.3 percent. In mobile campaigning the brands also found general display advertising to provide better results, that is why the general display advertising accounted for 60.3 percent, and search advertising accounted for 39.7 percent for the three months ended 30 June 2012.

The total online advertising market has increased 21 percent year on year with revenues pegged at USD3,135.95million. “Online advertising industry in Australia has broken the USD3billion barrier, and has grown in all categories. This report captures the truest picture of the online advertising industry in Australia with the inclusion of methodical estimates for Google and Facebook, and the inclusion of mobile advertising. The total advertising expenditure is on track with our forecasts and trends and we expect online advertising will surpass free TV in calendar year 2013 and print in FY1314,” informed Fisher.

The IAB Online Advertising Expenditure Report (OAER or Report), compiled by PricewaterhouseCoopers for June 2012 adopted a new approach. It supplemented the data collected from industry participants with the inclusion of estimates for Google display, video, and mobile advertising as well as Facebook display advertising. Maria Martin, partner, PricewaterhouseCoopers explained, “With the continuing explosion in online and mobile we thought it was essential to include an estimate of advertising revenue for  Google and Facebook, together with mobile advertising expenditures, to provide what we believe is now the most accurate data capture of the Australian online and mobile advertising market.”

Additionally, the report used a refined methodology for estimating Google search and it also included historical mobile advertising data collected from industry participants from March 2011 and combined with estimated Google mobile advertising, to give a picture for the first time of the aggregated Mobile advertising market and the growth trends. “The growth is strong and consistent with forecasts and trends in other major markets such as the US. This report provides a comprehensive data set intended to inform marketers, media and creative agencies, media owners, and technology providers and assist their business decisions,” Martin added.