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 djeremiah@frost.com.

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: djeremiah@frost.com

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
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
HyperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let’s say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
FinTech is the sum of financial and technology, and it’s one of the fastest growing tech industries. Total global investments in FinTech almost reached $50 billion last year, but there is still a great deal of confusion over what it is and what it means – especially as it applies to retirement. Building financial startups is not simple, but with the right team, technology and an innovative approach it can be an extremely interesting domain to disrupt. FinTech heralds a financial revolution that...
Imagine having the ability to leverage all of your current technology and to be able to compose it into one resource pool. Now imagine, as your business grows, not having to deploy a complete new appliance to scale your infrastructure. Also imagine a true multi-cloud capability that allows live migration without any modification between cloud environments regardless of whether that cloud is your private cloud or your public AWS, Azure or Google instance. Now think of a world that is not locked i...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
MongoDB Atlas leverages VPC peering for AWS, a service that allows multiple VPC networks to interact. This includes VPCs that belong to other AWS account holders. By performing cross account VPC peering, users ensure networks that host and communicate their data are secure. In his session at 20th Cloud Expo, Jay Gordon, a Developer Advocate at MongoDB, will explain how to properly architect your VPC using existing AWS tools and then peer with your MongoDB Atlas cluster. He'll discuss the secur...
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., will discuss how these tools can be leveraged to develop a lasting competitive advanta...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
SYS-CON Events announced today that SD Times | BZ Media has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...