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Executive Summary
3 months ended 30 September 2011
Total online advertising expenditure in Australia for the three months ended 30 September 2011 was $687.75m, an increase of $32.5m (or 5%) on second-quarter 2011, and an increase of $116.0m (or 20%) on third-quarter 2010.
General Display advertising accounted for 23.9%, Classifieds advertising accounted for 23.4% and Search and Directories advertising accounted for the remaining 52.7% for the three months ended 30 September 2011.
Both Classifieds and Search and Directories advertising achieved growth compared to the prior quarter, and General Display remained consistent with the prior quarter. All categories achieved growth compared to the prior year quarter.
Search and Directories experienced the strongest growth, compared with second-quarter 2011, at 7%.
Within General Display, for the third-quarter 2011, based on submissions received, email based advertising continued to increase comprising $10.5m of advertising expenditure. There was a small decline in video based advertising to $12.0m (from $12.2m in second-quarter 2011).
Within General Display, for the third-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 40.7% of the advertising market in the third-quarter 2011 (37.9% in second-quarter 2011 and 44.3% in third-quarter 2010). Motor Vehicles – Manufacturers was the largest subcategory which comprised 12.7% of the General Display spending for the quarter (slightly down from 12.9% in the second-quarter 2011).
Real Estate was the leading Category for Classifieds advertising expenditure in the third-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 September 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.
