Search Stays Strong As Market Weakens

SEARCH strong, classifieds weak, display ok. That’s a quick snapshot of the latest online advertising expenditure figures from the Interactive Advertising Bureau of Australia. The IAB estimates Australian businesses invested A$440m in online advertising during the March quarter – 14% more than the previous year.

Search and Directories, now the biggest category with more than 50% share of spend, was up 23% (A$225m), Display 16% (A$110m), while the classified sector fell 1% to A$105m. Encouraging results but the picture’s not so pretty when comparing March with the December quarter, revealing a 5% overall drop.

Paul Fisher, CEO of IAB Australia, commented: “Much will be made of the decline in revenues from Q4, but it’s important to note that historically Q1 online advertising revenues are always either flat or lower than Q4 in the online advertising industry.”

And he warned: “Continued economic pressure on some of the key advertising industry sectors notably automotive, financial services, travel, and in the classifieds sector real estate, employment and automotive, resulted in these sectors dampening the previous rate of growth.

“However, the industry is well placed to continue its strong, double digit growth for many quarters to come, especially when the Australian advertising industry begins its recovery from the current downturn.”

Search Engine Room: May 11, 2009


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