Q3 Online Advertising Reaches $347.75 million

Posted by IAB Australia On November 22, 2007 Media Releases

22 November, 2007: Online advertising continues its strong growth with expenditure for the third quarter 2007 totalling $347.75 million, the largest quarter recorded. The results, which were released today in the IAB Online Advertising Expenditure Report prepared by PricewaterhouseCoopers, show continued steady growth of 6.8 percent over second quarter 2007 and an increase of 32.2 percent from the third quarter 2006.
The breakdown of advertising remains relatively unchanged, with General Display advertising and Classifieds advertising accounting for 28 percent and 26 percent of the total advertising expenditure for the third-quarter 2007, respectively, while Search & Directories advertising comprised the remaining 46 percent.
Finance, Computers & Communications and Motor Vehicles sectors continue to be the dominant industries using General Display advertising, comprising over 52 percent of the General Display spending. Motor Vehicles increased its share two points to reach 15.7 percent while Computers and Communications decreased almost three points to 15.4 percent.
Recruitment continues to be the leading category for Classified Advertising expenditure, followed by Real Estate, then Automotive.
IAB Australia General Manager, Patty Keegan, commented: “The market is growing steadily and we anticipate that Q4 will again experience a seasonal growth surge, which should ensure the reported market reaches the predicted $1.4 billion for the full calendar year.

“We are continuing to work on including additional contributors to the report so that we can capture the full extent of the online market and are delighted to announce that Adconion, Drive Performance Media and Network Ten have contributed for the first time to the report,” said Ms Keegan.
PWC lead partner for technology, entertainment and media, Paul McNab said “The report shows growth across all categories, with Search and Directories again showing the strongest performance. The increased penetration of broadband internet access enables content providers to offer a richer media experience, thereby enhancing the online offerings to consumers. This supports the growth of online advertising which is likely to continue to grow significantly stronger than alternative forms of advertising.”
Report Methodology
With the exception of Search and Directories, the September 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.

Reports prior to March 2007 include estimates for the General Display and Classified categories. Growth rates for the current quarter compared to the prior year can be considered to be understated due to this different basis of measurement.


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 40 member companies, drawn from a broad spectrum of online advertising and marketing organizations, 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.

For further information about IAB Australia please visit: www.iabaustralia.com.au 

For more editorial information please contact:
Pru Quinlan
Einsteinz Communications
T: (02) 8905 0995
E: pru@einsteinz.com.au 

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.