Continued Strength in Australian Online Ad Revenue Growth


Growth in online advertising revenues in Australia slowed to a still-impressive 21.2% annual rate to reach $3.1 billion in the fiscal year (FY) ending 30 June 2012, according to industry-sourced statistics compiled by accounting firm PricewaterhouseCoopers and published by the Australian online industry’s peak trade association the Internet Advertising Bureau (IAB) of Australia.

Online’s continuing strong ad revenue growth performance prompted IAB Australia to predict that the sector would surpass free-to-air television in calendar year 2013 and print media in fiscal year 2014, in terms of aggregate advertising revenue generation.

The latest IAB Australia online statistics also represent an enhancement on previously reported data, thus rendering comparisons with periods prior to FY 2011 broadly, but not entirely, comparable.

In brief, the online ad revenue data for fiscal years 2011 and 2012 (but not for earlier years) now reflect both previously unreported data for mobile (smart phone, computer & computer tablet) advertising and also a refined methodology for the estimation of Google’s (substantial) search advertising revenues.

Global Media Analysis estimates that the inclusion of such new revenue in FY 2011 had the effect of increasing initially reported online ad revenues by about $132 million, representing an additional increase of about 6.1% over the aggregate online ad revenue data reported for FY 2010.

While still extremely impressive, the 21.2% growth rate in FY 2012 ad revenues nevertheless represented a slowing on the online sector’s revised annual growth rate of 26.6% for FY 2011.

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Report date: 29/09/2012
Industry: Online
Country: Australia
Topic: Ad Revenues
Document Number: GMA2012-83

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