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Online Ad Market Tops $1BN Mark
Louise Durack, B&T

The Australian online advertising market grew 61.5% in 2006, cracking the $1bn mark. This is according to the December 2006 Online Advertising Expenditure Report released February 12 by the Audit Bureau of Verification Services (ABVS).

The 2006 calendar year revenues for general advertising grew 56.2% over 2005 to $303m, with revenues for classifieds advertising up by 45.1% to $299m and search and directories advertising up by 81.4% to $399m.

The finance industry continues to be the top spender in the general advertising category with the recruitment industry maintaining its number one position for classifieds.

The $1bn in expenditure is reported in three broad advertising categories – general advertising, which accounted for 30.2% of total online ad expenditure; classifieds advertising which accounted for 29.9%; and search and directories advertising which accounted for 39.9%.

Patty Keegan, general manager of industry body Interactive Advertising Bureau said: “Now that the $1bn mark has been broached we expect to see 2007 figures soar. It’s clear that traditionally strong online advertising sectors such as finance and motor vehicles will continue to grow, but we’re also seeing strong spends in unexpected sectors such as home products and government, which bodes well for the future.”

Keegan continued: “The peaks through the year for each industry sector show the close ties between the immediacy of online advertising and sporting or cultural activities. For example we believe the market surge around alcoholic beverages was driven by the significant sporting events of 2006 such as the World Cup, cricket and the Commonwealth Games; while the Q4 surge was driven by Christmas-related activity for home electronic devices.”