Welcome!

News Feed Item

Frost & Sullivan: Online Video Outperforms All Other Segments of Online General Advertising

- Mobile Advertising on Smartphones to Reach $177 million by 2017

SYDNEY, Oct. 8, 2012 /PRNewswire/ -- The online general advertising market in Australia grew 21% from June 2011 to June 2012 to reach $768 million, and is expected to grow at a CAGR of 14% till 2017. Online video was the fastest growing type of online general advertising inventory, growing 58% during that period.

Based on Frost & Sullivan's report Australian Online General and Mobile Advertising Market 2012, published in October 2012 which includes a survey conducted with online advertisers in Australia, half of all respondents indicate that their online general advertising budget increased in 2012, with 39% indicating an increase of more than 25%.

The online video advertising market, at $86 million in 2012, is predicted to grow at a CAGR of 39% from 2012 to 2017. Its share of the online general advertising market will increase from 11% in 2012 to 30% in 2017, outperforming all other major online general advertising segments - online display, advertorials, integrated site content and sponsorships and EDM / e-newsletters.

Phil Harpur, Senior Research Manager, Australia & New Zealand ICT Practice, Frost & Sullivan said online general advertising expenditure funded from diversion of funds from traditional media advertising (such as newspapers, print directories, direct mail, TV, and radio) is still high. "This indicates that the migration from offline to online channels is a significant factor in the growth of the online advertising market. 59% of organisations indicated they had achieved measurable ROI from their online general advertising in 2012," he added.

"Social media is quickly becoming a popular advertising medium. Facebook has seen strong growth in advertising revenues and the proportion of Australian companies choosing to advertise on Facebook is growing strongly," Harpur shared.

Without incorporating social media into their marketing strategies, organisations acknowledge they risk failing to connect with a significant online audience. 43% of organisations use social media to monitor feedback on company performance or provide customer service and resolve customer issues.

The entry of ad exchanges into the Australian market is already leading to structural changes to the local online advertising eco-system. Over the last 12 months, agencies have bought a growing proportion of their ad spots directly on ad exchanges via Demand Side Platforms (DSPs) rather than via an ad network. This is particularly impacting ad networks who deal with second and third tier sites.

The mobile advertising market has gained strong momentum during the past year. Integration of mobile advertising inventory with other online and offline advertising products in an advertising campaign is recognised as crucial and is more widespread now than a year ago, especially in the retail sector. Growth during the 12 months to June 2012 was a very high 95%.  

Harpur also said that while Australian mobile carriers continue to explore mobile advertising as a revenue stream, their influence over the mobile ecosystem is subsiding as online publishers and specialist ad networks are becoming the preferred parties for agencies and brands to place their ad inventory.

"Global ad networks such as InMobi and AdMob are playing an increasingly important role in the local ecosystem, catering for Australians viewing more content on overseas sites," he elaborated.

"The mobile content market is becoming much more fragmented. With the addition of apps in the ecosystem there is a broader array of content options available, especially in the social media and gaming space. Local mobile advertising ad network specialists such as Big Mobile also continue to grow very strongly," Harpur explained.

Frost & Sullivan predicts strong growth over the next five years for the Australian mobile advertising market, with expenditure forecast to reach $177 million by 2017, with a CAGR of 46% between 2012 and 2017. Rising penetration of smartphones, and increasing amounts of mobile content available for advertising opportunities, along with growing acceptance of the mobile advertising medium by agencies and brands, will generate particularly strong growth in the mobile advertising market over the next two to three years.

Frost & Sullivan's report Australian Online General and Mobile Advertising Market 2012 forms a part of the Frost & Sullivan Australian Digital Media Research program. All research services included in this subscription provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. For media queries and more information please send an e-mail with your contact details to Donna Jeremiah, Corporate Communications, at [email protected].

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

Join Us:           Join our community

Subscribe:       Newsletter on "the next big thing"

Register:         Gain access to visionary innovation

Contact:
Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61-(02)-8247-8927
M: +61-(0)-407-598-937
F: +61-(02)-9252-8066
E: [email protected]

http://www.frost.com

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
"Outscale was founded in 2010, is based in France, is a strategic partner to Dassault Systémes and has done quite a bit of work with divisions of Dassault," explained Jackie Funk, Digital Marketing exec at Outscale, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Calligo has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo is an innovative cloud service provider offering mid-sized companies the highest levels of data privacy. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalized support service from its globally located cloud platfor...
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Kubernetes is an open source system for automating deployment, scaling, and management of containerized applications. Kubernetes was originally built by Google, leveraging years of experience with managing container workloads, and is now a Cloud Native Compute Foundation (CNCF) project. Kubernetes has been widely adopted by the community, supported on all major public and private cloud providers, and is gaining rapid adoption in enterprises. However, Kubernetes may seem intimidating and complex ...
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
"We focus on SAP workloads because they are among the most powerful but somewhat challenging workloads out there to take into public cloud," explained Swen Conrad, CEO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"As we've gone out into the public cloud we've seen that over time we may have lost a few things - we've lost control, we've given up cost to a certain extent, and then security, flexibility," explained Steve Conner, VP of Sales at Cloudistics,in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"DX encompasses the continuing technology revolution, and is addressing society's most important issues throughout the entire $78 trillion 21st-century global economy," said Roger Strukhoff, Conference Chair. "DX World Expo has organized these issues along 10 tracks with more than 150 of the world's top speakers coming to Istanbul to help change the world."
"We are focused on SAP running in the clouds, to make this super easy because we believe in the tremendous value of those powerful worlds - SAP and the cloud," explained Frank Stienhans, CTO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.