Video and mobile advertising tipped to increase, traditional online inventory to decline
The online advertising market in Australia is predicted to grow to an annual value of over $1 billion in 2016, according to a market report, with video ads and rich media tipped to have the highest growth and demand for traditional online inventory such as display ads and EDMs to decline.
Phil Harpur senior research manager Australia/New Zealand at Frost & Sullivan, the company behind the research, said the increased presence of online video streaming and growth in mobile advertising will drive the trend for rich media advertising in Australia.
“Right now Australian mobile advertising expenditure is low compared to the UK and the USA, despite the fact that Australia’s smartphone penetration is now roughly on par with those markets. But, this is already starting to change and we anticipate rapid growth as mobile advertising, driven by further adoption of smartphones and strong growth in Tablet PCs, gains more acceptance amongst advertising agencies as a crucial part of the overall advertising mix”, he said.
From the 12 months to June 2011, online ad spend increased by 11.9% to a value of $635 million, not including mobile advertising, according to the 2011 Australian Online General and Mobile Advertising Market Report.
I think you need to define ‘mobile’, just because someone has a smartphone or a tablet doesn’t mean it is mobile…….is ‘mobile’ defined as content or the hardware.
These products are just making the internet more accessible to consumers who are ‘on the go’ which means they are accessing more online display inventory not necessarily mobile.
Mobile content is very different then “online display inventory”, in fact the same online display strategy does not work that well on Mobile. Mobile advertising includes location services, SMS, Apps, gamification, click-to-call, Bluetooth, QR codes etc.
I honestly can’t see email declining, if anything the shift by people to access email via their smartphones and tablets will see a mini rennaisance of eDM as advertisers realise it still has greater cut through than anything else.
@anon_coward: Do you sell eDMs by chance oO.
Email may not be declining, yet checking and reading email on a SmartPhone is through the roof…you would think that a smart eDM provider would at least make any action within that email arrive at a SmartPhone friendly landing page.
A decline in standard display can’t happen too soon…they are the bane of the web and suffocate true creativity and innovation in digital agencies.
Very true Cameron. It’s a rare occurrence for me these days to check emails (unless content-rich) on anything BUT my smartphone.
“Of the 240 senior management executives surveyed, more than 60% said they plan to increase their mobile ad budgets next year.”
We will wait and see.