Online video was the fastest growing area of online advertising in Australia, growing 58% between June 2011 to June 2012. The online advertising market in Australia grew 21% to reach $768 million, and is expected to grow at a compound annual growth rate (CAGR) of 14% till 2017, according to a report by Frost & Sullivan, a corporate consultancy firm. The Australian video advertising market is currently valued at around $86 million, and is predicted to grow at a CAGR of around 39% from 2012 to 2017.
Frost & Sullivan say video’s share of the online advertising market will increase from 11% in 2012 to 30% in 2017, outperforming all other parts of online, including display, advertorials, integrated site content, sponsorships and email marketing.
Phil Harpur, Senior Research Manager, Australia & New Zealand ICT Practice, Frost & Sullivan said the growth of online is coming about as funds continue to be diverted from less accountable forms of traditional media. “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.
Ad exchanges have also been as disruptive in the Australian market as much as they have everywhere else, with agencies increasingly buying via demand side platforms (DSPs) rather than via ad networks, although Frost & Sullivan say the impact of RTB has thus far been mainly affecting ad networks who deal with second and third tier sites.
Over the next five years, 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.