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Online ad spend to surpass print, TV in Australia by 2013: Study

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MUMBAI: For the first time, the advertising spends on online medium will exceed that on television or newspaper by 2013, reports Interactive Advertising Bureau of Australia.

The results, which were announced by IAB Australia in its Online Advertising Expenditure Report (OAER) compiled by PricewaterhouseCoopers (PwC), show that while the general advertising market is softening, online advertising is on track to surpass both newspaper and TV advertising in 2013.

Online advertising has continued to grow, achieving 10 per cent year on year growth recording $813.25 million for the three months ending September 2012, the report said.

When compared to the September 2011 quarter, all three reported sectors grew, with General Display marginally up one per cent, Search and Directories up 15 per cent, and Classifieds advertising up by seven per cent,

IAB Australia CEO Paul Fisher said, "Double digit growth in the media and economic climate of the past 12 months bucks the trend across the broader media industry. While growth has slowed in digital this past quarter the outlook for the Christmas quarter looks encouraging."

"Our work as an industry to improve online behavioural advertising technology and deliver better audience and campaign measurement tools has resulted in more ?brand? focused online advertising display formats and a clear and growing confidence in the medium by marketers," Fisher added.

PWC partner Maria Martin said, "While the online advertising sector is settling into strong and sustained growth, it?s clear that the search by marketers for new ways to engage with consumers is fueling mobile advertising growth rates."

Mobile advertising recorded $22 million for the September quarter, representing 190 per cent year on year growth and a 24 per cent increase on the June 2012 quarter.

Search and directories continues to dominate the online advertising sector overall with 53 per cent share of spend. Classifieds holds 21 per cent share and General Display 26 per cent market share.

Within General Display, the motor vehicle category grew strongly to be the highest spending in the advertising industry this quarter, with finance and real estate sectors the next largest categories.

The report also showed that the retail share of expenditure reached 7.2 per cent share, up from 6.5 per cent in the previous quarter. In Classifieds, real estate, recruitment and automotive were the leading categories. This is the same order as the prior quarter.

The report undertook new approach for the study. The data collected from industry participants has been supplemented by estimates for Google display, video and mobile advertising as well as Facebook display and mobile advertising, while the prior methodology for estimating Google search has been refined.

Historical mobile advertising data collected from industry participants has been combined with estimated Google mobile advertising to provide a picture of the aggregated mobile advertising market and trends.

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