Non-IAB Members can access the Executive Summary and IAB Members can access the full report in the “Downloads” section below
Executive Summary
Three months ended 31 March 2007
Online advertising expenditure in Australia for the first-quarter 2007 (3 months ended 31 March 2007) totalled $294 million, the largest first-quarter recorded. This is a decline of $23 million (or 7%) from the fourth-quarter 2006 (3 months ended 31 December 2006), but is an increase of $99 million (or 51%) from the first-quarter 2006. The decrease compared to the fourth-quarter 2006 was not unexpected due to the weakness in the General Display Advertising market which occurs in the firstquarter of each year, due to the holiday season at the start of the quarter. As the online advertising market becomes more mature, it would be reasonable to assume that the other broad categories would reflect the weakness experienced in the general advertising market in the first-quarter of each calendar year.
General Display advertising and Classifieds advertising accounted for 26% and 27% of the total advertising expenditure for the first-quarter 2007, respectively, while Search and Directories advertising comprised the remaining 47%.
Finance, Computers & Communications and Motor Vehicles sectors continue to be the dominant industries using General Display advertising, and comprise over 50% of the General Display spending.
Recruitment, Real Estate and Automotive continue to be the leading categories for Classified Advertising expenditure.
It should be noted that this is the first report prepared by PricewaterhouseCoopers for the IAB Australia and that there may have been some methodology changes compared to the preparation of the previous reports by ABVS. With the exception of Search and Directories, the March 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.
PwC and the IAB Board are actively encouraging other industry participants to become contributors to this Report.
