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Frost & Sullivan: Australian Online General And Advertising Market To Reach $1,493 Million In 2018

SYDNEY, Nov. 5, 2013 /PRNewswire/ -- Australia's online general advertising market grew a robust 12% in the last 12 months to reach $862 million in June 2013. Online video was the fastest growing type of online general advertising inventory, accounting for 15% of overall online general advertising revenues, up from 11% in 2012. Social media accounted for 11% of the overall market, up from 9% in 2012.

Ad networks and the major online publishers lost market share, the latter by 2% compared to the previous year, although this segment still occupied the largest slice of the online general advertising revenue pie.

Frost & Sullivan's new report, Australian Online General and Mobile Advertising Market 2013 forecasts Australia's online general advertising market to grow at a CAGR of 12% to reach $1,493 million in 2018. Spending will grow across all online general advertising products, particularly online display and e-mail campaigns. The online video advertising market is predicted to outperform all other online general advertising segments, increasing from $133 million in 2013 to $513 million in 2018, with its market share reaching 34% in 2018.

Several online publishers including Fairfax Media and Yahoo!7 are developing  Data Management Platforms (DMPs). Phil Harpur, Senior Research Manager, Australia & New Zealand, Frost & Sullivan explains, "DMPs enable aggregation and analysis of subscription and transactional data, allowing better understanding of customers, and therefore, more effective targeting.  As a consequence, a growing proportion of ads served on their networks are using more advanced targeting techniques, providing better market offerings from the perspective of online content and ad inventory creation, through more targeted customer engagement".

Although challenged by larger publishers, the second tier online publishing market segment grew solidly over the last 12 months. Players such as Prime Media Group are pursuing strategies of becoming digital communities to reduce reliance on banner advertising. Major online classifieds publishers like REA and Carsales are continuously strengthening their general advertising businesses outside of their online classified listings.

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