Online To Boom Despite Economic Woes
0Overall Score

Online news services are set to benefit from the current economic downturn say research group Frost & Sullivan.They also claim that Australia’s total general advertising market revenues to increase 24% year-on-year in 2008, growing from $387 million to $481.4 million.

 

According to an ADNews story  “The online general advertising market continues to enjoy solid growth and is not only well placed to weather the current slowdown in overall media budgets but is set to benefit from its increasing cost effectiveness in tight economic conditions,” said Darryl Nelson, Frost & Sullivan senior research manager of digital media.

“Advertisers continue to see the increased lead generation and sales coming from the online channel, but are also now looking online to get more bang for their brand marketing buck. The current tightening of marketing budgets overall strengthens their commitment to their digital strategies.”

Growth slowed dramatically in the first half of 2008, growing by less than 1% from the second half of 2007, according to Frost and Sullivan’s Australia Online General Advertising Market 2008-2012 report. However, solid growth has returned and is expected to continue strongly throughout 2009.

The study confirms site display advertising continues to decline as a share of total revenue, dropping from 69% in financial year 2007 to 64% in financial year 2008. Instead, growth is dominated by “next-generation” brand marketing, including video and integrated content, and performance marketing, such as email direct marketing and cost-per-click or cost-per-action campaigns.

 

Although a number of new industries are engaging in online advertising, spending continues to be dominated by traditional advertisers including the banking, finance and insurance industry, the automotive sector and communications industries. Together, these segments accounted for just over half of all online advertising revenues in the 2008 financial year.


“The online general advertising market continues to enjoy solid growth and is not only well placed to weather the current slowdown in overall media budgets but is set to benefit from its increasing cost effectiveness in tight economic conditions,” said Darryl Nelson, Frost & Sullivan senior research manager of digital media.

Although a number of new industries are engaging in online advertising, spending continues to be dominated by traditional advertisers including the banking, finance and insurance industry, the automotive sector and communications industries. Together, these segments accounted for just over half of all online advertising revenues in the 2008 financial year.

For more on this story go to ADNews.