ONLINE
ADVERTISING COMES OF AGE
(Reproduced
with acknowledgements to Adnews and Journalist Danielle Long)
Sydney
Australia: 9th April 2004
Online
advertising is not the last kid on the block anymore, with audit
figures revealing the internet increased its share of the total
ad wallet by 41% in 2003.
The figures,
released by the Audit Bureau of Verification Services,
confirmed what media agencies, advertising agencies and publishers
already knew: online advertising is a significant part of the
media mix.
Last year
advertisers spent $236million online, putting the online
category ahead of outdoor, cinema and pay TV and only just behind
radio advertising.
The figures
from the Online Advertising Expenditure Report are being
seen as official confirmation of the growing awareness and confidence
among the advertising industry towards the use of online.
“These figures
show that the local market is playing catch up to overseas markets
like the U.S and the U.K, where online advertising is between
2% and 3% of the market compared to 1.5% in Australia. “We still
have a lot of growth to go but there is definitely momentum,”
said F2 Network COO Nick Leeder. “We are seeing more clients
and traditional agencies get their heads around the internet
and begin to make it a bigger part of the media mix.
The report
also revealed a 51% growth for the six months to December 2003
over the same period in 2002, a figure in line with the growth
experienced by Ninemsn, which increased revenue by 47% and eMitch,
which increased billings by 50%. The f2 Network increased its
advertising revenue by 55% year on year.
Already
this year, the market is showing strong growth with eMitch recording
40% growth year on year for the March quarter. “This growth
is not a flash in the pan – it shows a fundamental change in
the marketplace,” Simson said. “Online is not the last kid on
the block anymore.”
A combination
of increased broadband penetration, a growing internet population
and more first-time online advertisers is driving the growth.
(THANKS
TO ADNEWS 9TH APRIL 2004)