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Frost & Sullivan: Online Advertising Market in Australia grew 62 per cent in the last year

  • 20 February, 2007 10:27

<p>Total online advertising revenues reached the $1 billion mark in 2006, with a year-on-year growth of 62 per cent. Strong growth was seen in all the main product segments: paid search led by growing more than 100 per cent, followed by general advertising (48 per cent); directories (60 per cent) and classifieds (49 per cent).</p>
<p>New analysis from global growth consulting company, Frost &amp; Sullivan (, The Australia Online Advertising Market 2006 – 2010, reveals that revenues in this market totaled $1.01 billion in 2006 and is set to grow to an estimated $2.95 billion by end-2010.</p>
<p>Paid search explosive growth was mainly due to search engine pay-per-click keyword advertising, which outpaced both contextual search and paid directory listings.</p>
<p>“Google emerged the biggest winner – to become joint overall market leader with Sensis”, says Darryl Nelson, research director at Frost &amp; Sullivan Australia. “The search engine specialist continues to lead the fast growing paid search market, stamping its dominance as the market leader.”</p>
<p>Seek, the employment classifieds specialist, became the third largest online publisher in Australia, over taking Fairfax digital and replacing Ninemsn’s bronze medal position. Adds Mr. Nelson, “The strong jobs market in Australia in 2006 drove the classifieds segment, which accounts for 30 per cent of the total online advertising market.”</p>
<p>“Our observation of the market points to paid search continuing to see strong growth in the future, we estimate paid search revenues to grow to $975 million by end-2010, a CAGR of almost 40 per cent.”</p>
<p>At this time Google commands this segment primarily through its AdWords service which was also the search marketing media of choice by advertisers, reveals a survey conducted by Frost &amp; Sullivan.</p>
<p>The survey was carried out late last year with senior management level executives split between existing online advertising users and non-users. A total of 462 respondents participated in the survey which looked at advertiser usage patterns, attitudes and intentions.</p>
<p>The Australia Online Advertising Market 2006 – 2010 Supply Report &amp; the Australia Online Advertising Market 2006 Advertisers Survey forms part of Frost &amp; Sullivan Australia’s digital media subscription, which also includes research on the following sectors: The Australia Consumer Mobile Content Market, 2006 – 2010; and The Australia Search Marketing Market, 2006 – 2010. This service can be purchased separately or bundled as a full report.</p>
<p>All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Analyst interviews are available to the press.</p>
<p>If you are interested in a virtual brochure, which provides service providers, vendors/manufacturers, end users and other industry participants with an overview of the Australia Online Advertising market, then send an e-mail to Sharmin Jassal, Corporate Communications, at with your full name, company name, title, telephone number, fax number, city, state, country and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.</p>
<p>Frost &amp; Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost &amp; Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit</p>

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