Internet advertising in Australia inches closer to $10 billion mark
Australia’s advertising market is set to grow substantially in the near future, driven primarily by growth in the online advertising space. PwC predicts that investment in internet advertising in Australia will surpass $10 billion by next year, and will then expand to $16 billion by 2023.
The Big Four accounting and advisory firm attributes the injection of momentum in Australia’s online advertising space to the advent of Amazon Advertising in the country. The online behemoth is expected to boost growth in most segments, which were previously already on growth trajectories.
Last year, the value of online video advertising in Australia grew by more than 26%, which is due in no small part to the rapid market penetration through social media platforms, including Facebook, Instagram and YouTube. Average time spent consuming video content daily is now just short of one and a half hours across the globe, which is ideal for the success of these platforms.
On the other hand, the significant opportunity that these platforms present are accompanied by equally heavy risks, relating to concerns of brand safety, among others. PwC uses the example of the recent terror attacks in New Zealand to demonstrate the precise nature of these concerns.
A number of advertisers have grown more cautious about their pre-video advertisements on YouTube and other video platforms, after the screening of their commercials before videos of the terror attacks inadvertently represented an endorsement of violence. This, in a nutshell, is the risk with user-generated content.
However, the platforms in question have the resources at their disposal to establish comprehensive vigilance mechanisms, allowing them to withdraw their content with efficacy in such scenarios. One genre of platforms that does not run reputational risks in this regard are search engines.
Predictably, the largest pillars supporting the digital media market in Australia are Google, Facebook, YouTube and Amazon, which is consistent with most digital content markets across the globe. The dominance of these platforms is such that “the rest of the online advertising market is in decline,” states the report.
Overall, growth in the digital sphere is likely to push up advertising numbers on other formats as well. Expenditure on advertising across Australia is likely to touch $23 billion by 2023, according to PwC, while the entertainment and media sector in the country will grow at a compound annual growth rate (CAGR) of nearly 8% over the same period.
To capitalise on the market's growth, businesses from a number of sectors – including management and digital consulting – are looking to boost their capabilities in advertising.
