Digital Ads Earn More Than Digital Advertising in Australia
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Digital ads have been growing in Australia, but the digital advertising industry has still struggled to catch up.
The average digital ad impression per dollar spent is still about $1.80, compared to $1 in 2012.
The Australian Bureau of Statistics has found that digital ads are worth about $14.60 per person in total, up from about $10.40 in 2012, and $5.50 in 2011.
That’s more than double the $1 cost of a typical digital ad.
Digital advertising is still far from being mainstream.
Australia’s advertising industry is not a huge player.
It has a total ad revenue of $1,823 billion last year, according to the ABS.
It only accounts for 4.6 per cent of Australia’s GDP, which is below the OECD average of 6.9 per cent.
The digital advertising market is still a relatively new one, and it still hasn’t been taken seriously by the big players.
The online advertising market grew from $2.5 billion in 2011 to $5 billion last summer, but it is still growing at about 3 per cent a year.
“There’s no real reason why they shouldn’t be in the market, but you can’t really rely on them as the standard bearer,” says Dan MacGregor, who heads the Digital Advertising and Advertising Practice at Ipsos, which conducts research on the digital ad market.
“They’re not as big as they used to be.
They’re a bit undervalued and the market is very volatile.”
Aussie companies are starting to take a more strategic approach Digital advertising has also gained more traction in the UK, where digital advertising is more mainstream, according the British Association for Digital Marketing (BADM).
The digital ad industry there is still small, and digital advertising tends to be less effective at driving traffic to websites.
The biggest challenge facing the digital market is finding businesses who are ready to take it seriously.
“I think Australia has a lot of room to grow and I think we’ll see a lot more companies coming in,” says Matthew Gee, director of digital advertising for Badminton, which specialises in online gaming.
“We’ll see the rise of digital brands that are really confident and can deliver high-quality, high-value ads.”
In the US, online gaming giant Zynga recently introduced a paid digital advertising campaign, but says it’s not yet ready to enter the Australian market.
Digital ad impressions were $1 per dollar in the US last year.
In Australia, the average digital impression was $1 each.
Digital ads will be more effective in Australia The big digital advertising players in Australia are Google and Facebook, which together generate around $25 billion in ad impressions annually.
But the competition is also fierce in Australia.
Digital publishers like Zyngas AdSense account for less than 10 per cent, while digital companies like Facebook and Google have a combined total ad revenues of $6 billion.
That means a digital ad purchase can cost $20,000 or more, depending on the size of the company.
“The ad-driven model of ad buying is not the way advertisers spend their money in Australia,” says Josh Chittenden, an associate professor of digital marketing at the University of Melbourne.
“A lot of people think ad spending is not very important, but if you look at the numbers, it is.”
The industry in Australia has struggled to get ahead of the digital trend in Australia Mr Chittonden believes there are many challenges ahead for the digital industry.
“It’s an incredibly small market, so it’s a big challenge to really get a foothold in,” he says.
“When you look to digital advertising, it’s really the only way to compete with traditional advertisers in the way that they’re used to, which are not only targeting people on the web but also the phone.”
The ad model is still very reliant on the phone, but they’re starting to get a lot better at doing it.
“One big obstacle is that advertising is a very different experience to the one most Australians have been accustomed to.
The mobile phone landscape in Australia is dominated by a few companies, such as Google and Apple.
Google’s AdSense platform was developed in Australia and is one of the fastest growing ad platforms in the world.
It recently overtook Facebook in the country.
In a recent report, Facebook said it had reached 3.4 billion monthly users worldwide, which accounts for about 50 per cent in Australia alone.
“And I think the digital world will be one of those places where the ad buying experience will change in a big way.””
Advertisers are starting a little bit to learn from Australia and it’s still very much in the early stages,” he said.
“And I think the digital world will be one of those places where the ad buying experience will change in a big way.”
Digital ads have been growing in Australia, but the digital advertising industry has still struggled to catch up.The average digital…