Australian Online Advertising Reaches Almost $1.2 billion for 12 months ending 30 June 2007

Posted by IAB Australia On August 08, 2007 Media Releases

8 August, 2007: According to IAB Australia’s Online Advertising Expenditure Report released today by PricewaterhouseCoopers (PwC) online advertising jumped in the second quarter of 2007, recording 10.7% growth on the preceding quarter and totalling $325.5 million, making it the largest second quarter ever recorded.

Overall market growth has slowed slightly, although for the 12 months ended 30 June 2007 online advertising totalled $1,199.5 million, an increase of $421.5 million (or 54.2%) from the 12 months ended 30 June 2006.

mcm entertainment contributed for the first time to this report and a number of other industry participants are currently considering becoming contributors. At present, data and information is reported directly to PwC by online advertisement selling companies representing over 1,000 web sites.

IAB Australia General Manager, Patty Keegan, said: “The quality of data being captured by PwC is high and we’re confident that this report provides the most comprehensive and accurate measurement of online advertising expenditure in Australia. We are delighted that more publishers continue to support this report by providing their data and we welcome new additions over the coming quarter.”

PwC lead partner for technology, entertainment and media, Paul McNab, said: “The report shows that solid growth across all categories has continued, with especially strong growth continuing in Search and Directories. It is clear that advertisers continue to increase their online advertising budgets as they become more accustomed to online media.”

Second Quarter Details
In the second quarter 2007 results, General Display advertising and Classifieds advertising accounted for 28% and 27% of the total advertising expenditure, respectively, while Search & Directories advertising comprised the remaining 45%.

Finance, Computers & Communications and Motor Vehicles sectors continue to be the dominant industries using General Display advertising, and comprise over 54% of the General Display spending. Recruitment continues to be the leading category for Classified Advertising expenditure, followed by Real Estate, then Automotive.

Six months ended 30 June 2007
Online advertising expenditure in Australia for the 6 months ended 30 June 2007 totalled $619.5 million, an increase of $39.5 million (or 6.8%) from the 6 months ended 31 December 2006, and is an increase $198.5 million (or 47.1%) from the 6 months ended 30 June 2006.

Report Methodology
With the exception of Search and Directories, the June 2007 OAER does not include any estimates for non-contributors. The Search and Directories category includes an estimate of advertising expenditure received by Google, the largest company in the Search market. Due to estimates not being included for non-survey contributors for the General Display and Classified categories, these markets can be considered larger than as reported in the OAER.

Report Availability
The Online Advertising Expenditure Report will be freely available to download from the IAB Australia website from 9th August 2007. Interested parties may register to receive the quarterly reports from the IAB website.


About the Interactive Advertising Bureau
IAB Australia officially launched in October 2005 with Australia’s six major online publishers -Fairfax Digital, Google, News Digital Media, ninemsn, Sensis, and Yahoo!7 – together with the Australian Interactive Media Industry Association (AIMIA) as its founding members. The IAB now has an additional 36 member companies, drawn from a broad spectrum of online advertising and marketing organisations, technology and services companies.

The group has three key priorities: to promote the standardisation of ad formats; to ensure timeliness and transparency of industry data, and to educate the marketplace about the value of online advertising.

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IAB Australia

IAB Australia is the peak trade association for online advertising in Australia. As one of over 43 IAB offices globally and with a rapidly growing membership, the role of the IAB is to support sustainable and diverse investment in digital advertising across all platforms in Australia.