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Executive Summary
3 months ended 30 June 2011
Total online advertising expenditure in Australia for the three months ended 31 June 2011 was $655.25m, an increase of 54.25m (or 9%) on first-quarter 2011, and an increase of $102.75m (or 19.0%) on second-quarter 2010.
General Display advertising accounted for 24.7%, Classifieds advertising accounted for 23.4% and Search and Directories advertising accounted for the remaining 51.9% for the three months ended 30 June 2011.
All categories achieved growth compared to the prior quarter and the prior year quarter. General Display experienced the strongest growth, compared with first-quarter 2011, at 25%.
Within General Display, for the second-quarter 2011, based on submissions received, email based advertising and video based advertising continued to increase comprising $9.0m and $12.2m respectively of advertising expenditure.
Within General Display, for the second-quarter 2011, CPM based pricing continued to be the dominant pricing method with 79% of advertising expenditure on a CPM basis, and 21% on a Direct Response basis.
The Finance, Computers & Communications and Motor Vehicles sectors continue to be the dominant industries using General Display advertising. These industries represented 37.9% of the advertising market in the second-quarter 2011 (38.8% in first-quarter 2011 and 42.9% in secondquarter 2010). Motor Vehicles – Manufacturers was the largest subcategory which comprised 12.9% of the General Display spending for the quarter (up from 11.5% in the first-quarter 2011).
Real Estate was the leading Category for Classifieds advertising expenditure in the second-quarter 2011 followed by Recruitment then Automotive. This is the same order as the prior quarter.
During the quarter Search grew at a faster rate than Directories. With the exception of Search & Directories, the June 2011 OAER does not include any estimates for non-contributors. The Search & 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 to be larger than as reported in the OAER.
As estimates were included in figures reported for periods prior to, and including, June 2006, growth rates in this Report for March 2007 and subsequent quarters (when compared to the figures reported for any period prior to the March 2007 quarters) can be considered to be understated. This applies to the quarterly, 6 monthly and annual analyses.
6 months ended 30 June 2011
Online advertising expenditure in Australia for the 6 months ended 30 June 2011 was $1,256.25m, an increase of $56.75m (or 5%) on the 6 months ended 31 December 2010, and an increase of $200.25m (or 19%) on the 6 months ended 30 June 2010.
During the current six months ended 30 June 2011, online advertising expenditure grew in Search and Directories (11%) and Classifieds (6%). There was a decrease in General Display advertising expenditure by 9% compared to the prior 6 month period.
Real Estate was the leading Category for Classifieds advertising expenditure in the 6 months ended 30 June 2011 followed by Recruitment then Automotive. This is the same order as the prior 6 month period.
During the 6 months Search grew at a faster rate than Directories.
12 months ended 30 June 2011
Online advertising expenditure in Australia for the 12 months ended 30 June 2011 was $2,455.75m, an increase of $412.0m (or 20%) on the 12 months ended 30 June 2010. The increase has been due to growth experienced in all categories, with a 23% increase in Classifieds advertising and Search and Directories advertising and a 12% increase in General Display advertising from the prior year ended 30 June 2010.
General Display advertising accounted for 24.9%, Classifieds advertising accounted for 23.6% and Search & Directories advertising accounted for 51.5% based on expenditure for the past 12 months.
Within General Display, based on submissions received, email based advertising comprised $33.1m of advertising expenditure, a decrease of 2%, and video based advertising comprised $38.8m of advertising expenditure, an increase of 53%.
Within General Display, CPM based pricing was the dominant expenditure type with 76% of advertising expenditure on a CPM basis, and 24% was on a Direct Response basis.
The highest spending Advertiser Industry category in General Display advertising was Finance which was followed by Motor Vehichles and Computers and Communications. Together these accounted for 41.4% of the total General Advertising expenditure. Motor Vehicles – Manufacturers was the largest subcategory which comprised 11.57% of the General Display spending for the year.
Real Estate was the leading Category for Classifieds advertising expenditure in the 12 months ended 30 June 2011 followed by Recruitment then Automotive. This is the same as the prior year.
During the year Search grew at a faster rate than Directories.
