Australia’s advertising landscape is going big on cash. Recent news reports say that advertising agencies will see an impressive growth in profit in the next five years.
Experts explain that the local market is set for an increase of 4.1 percent to $13.7 billion in 2015, despite the low demand for advertising in the metropolitan television market. What’s driving this growth? Digital advertising.
Strengthened Digital Advertising
Australia ranks eighth on the list of largest advertising markets and biggest on per-capita basis.
According to experts from advertising agencies, the country’s expenditure on internet display and classified, paid search and mobile platforms reached 13.4 percent to $5.7 billion.
Over the years, digital advertising has proven that it has the most influence across all types of channels. It has beaten traditional media such as radio, print and TV. For instance, it expanded at a rate of 20 percent in the period between June 2011 to June 2012, surpassing the growth rate of other channels.
The top online advertising segment was search advertising, which delivered a lift of 23 percent in 2013. Next would be the online general advertising, which increased 12 percent. The online classifieds grew to 11 percent, while online directories saw a 4 percent growth.
Experts say that search advertising will continue to surpass the other three major online segments from 2015 until 2018.
The Fastest Growing Segment
As expected, the fastest growing segments in the Australian online advertising industry are mobile and online video. These two segments are set to dominate the market in the next five years. Experts say that mobile advertising will grow at a Compound Annual Growth Rate (CAGR) of 39 percent next year between this year until 2018. Video advertising, on the other hand, will grow at 31%.
With mobile and social media usage becoming more prominent, digital advertising in Australia will continue to gain strength. Experts forecast that it will outperform traditional channels with a CAGR of 12% in the next five years.