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Online Advertising worth more than $2 billion – IAB

Online Advertising worth more than $2 billion – IAB

by Willem Reyners Tay 

The latest expenditure report from the IAB, the industry body for online advertising, has revealed that the online advertising industry was worth $2.044 in the 12 months to June 2010, representing 13% growth compared to 2009.

The report, Online Advertising Expenditure report, was compiled by PWC and is based on figures provided by20 leading Australian publishers representing more than 1000 websites.

The year to June 2010 saw the greatest increase in the search and directories market, which grew by 16% year on year.

Whilst IAB CEO Paul Fisher said that the vast majority of this growth was the result in a sharp rise in search advertising, he could not say how much. The $1.027 billion spent on search and directories is also includes PWC estimates of Google’s Australian search revenue.

General display advertising grew by 11% to $547 million, slightly outstripping the growth of Classifieds, which topped $470 million with a growth rate of 9% year on year.

Display advertising revenue in Australia continues to be focused on a CPM model, with performance advertising only accounting for 25% of revenue.

It must be noted that again the true value of display advertising in Australia is likely to be significantly higher, with dominant social network Facebook, and most overseas sites that include Australian targeted ads were not included in the IAB’s figures.

As catch up TV gains wider acceptance, online video was counted for the first time, rising to $25.3 million for the year, and $9.6 million for Q2 2010.

Mr Fisher acknowledged that the true value of video in Australia was likely to be much higher, by “as much as to 100%”, with some publishers not willing to separate video revenue from general display.

Whilst the IAB’s figures an incomplete picture, with growth markets like mobiles and social networks not represented, what can be said is that online advertising is continuing its rapid growth in both revenue and market share, with advertisers continuing to move budgets online with the industry projected to exceed $3 billion in the next four years.


What are People Really Buying Online?

by Permuto

What people buy online differs substantially from what they buy in-store. According to a study by the US Census Bureau, the bulk of sales are still in-store. There are, however, several categories in which online sales dominate each product marketplace. These include: books and magazines, clothing, and electronics. Below, we have broken down the sales for each category, to show the percentages of  both online and in-store sales as a part of the total marketplace, as well as a comparison of the two in absolute terms.

(click image to enlarge)

The data used for this piece, can be found here.

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