Online Advertising posts another record quarter

Posted by IAB Australia On November 09, 2010 Media Releases

9 November, 2010: Total online advertising expenditure in Australia has continued its strong growth, posting a record quarter of $571.75 million. The results which were released today in IAB Australia’s Online Advertising Expenditure Report (OAER) compiled by pwc, recorded an increase of $105.5m, representing 23 percent growth from the comparable third quarter in 2009. 

Compared to the 2009 Q3 quarter, growth in online advertising expenditure was experienced in all categories with general display, classifieds; and search and directories recording 26 percent, 30 percent and 18 percent quarter on quarter growth respectively.   

Paul Fisher, CEO of IAB Australia said “Feedback from media agencies and advertisers indicates a continued and growing confidence in the online channel as an effective medium to reach, engage and influence consumers, and these expenditure figures demonstrate that investment is indeed following consumer behaviour – online. 

“Online advertising is still in an aggressive growth cycle and the signs for continued double digit growth for many quarters to come are strong. As we head into the lead up to Christmas and the strongest retail period of the year, advertisers will continue to leverage the power of online advertising to influence consumer’s Christmas purchase choices. 

“This latest expenditure data puts the medium on track to exceed $2.2 billion for calendar year 2010, taking a growing share of the Australian total advertising market,” concluded Mr Fisher.

General display advertising and classifieds advertising accounted for 26.5 percent and 24.6 percent respectively, of the total advertising expenditure for the third-quarter 2010, while search &
directories advertising comprised the remaining 48.9 percent.

Within general display, based on the submissions received, email based advertising comprised $7.6m of advertising expenditure, while video based advertising comprised $8.4m of advertising expenditure, slightly down on Q2 2010.

CPM based pricing continued as the dominant expenditure type with 75% of advertising expenditure on a CPM basis, and 25% on a direct response basis.

The health, beauty and pharmaceuticals category within general display continued to showed good growth, making it to the top five categories for the first time.

Finance, motor vehicles and computers & communications continue to be the dominant industries using general display advertising, comprising 44.3 percent of the general display spending. Motor vehicle (manufacturers) was the largest subcategory at 10.5 percent of general display spending for the quarter, marginally down from 10.7 percent in second-quarter 2010.

Real estate was the leading category for classifieds advertising expenditure in third-quarter 2010, followed by recruitment, and then automotive.

Year on year comparative data is not yet available for email or video based advertising, nor the pricing model breakdown. 

The 2010 IAB Online Advertising Expenditure Report covers more than 1,000 websites.  An executive summary of the Report is available on the IAB Australia website. The full report is made available to IAB Australia members only. 


About the Interactive Advertising Bureau
The Interactive Advertising Bureau (IAB) Limited is the peak trade association for online advertising in Australia. As one of over 32 IAB offices globally, and with a rapidly growing membership, IAB Australia’s principal objective is to increase the share of advertising and marketing dollars that interactive media captures in the marketplace. 

Incorporated in July 2010 by nine founding members  – Fairfax Digital, Fox Interactive Media, News Digital Media, ninemsn, REA Group, Ten, Yahoo!7, and Sensis Media Smart – together with the Australian Interactive Media Industry Association (AIMIA), the IAB has four objectives: 

• To develop, coordinate and promote industry standards and guidelines that make interactive advertising a simpler and more attractive medium for agencies, advertisers and marketers 
• To prove and promote the effectiveness of interactive advertising to advertisers, agencies, marketers, and the press 
• To be the primary advocate for the interactive marketing and advertising industry 
• To expand the breadth and depth of IAB membership while increasing direct value to members 

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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.