Online advertising outperforms all other channels

Online advertising is set to grow to 41 per cent of the total ad market by 2018, according to new figures.

Consultancy firm Frost & Sullivan found online to be the stronger performer across overall advertising expenditure in all media – outpacing traditional channels such as print, TV, outdoor and radio advertising.

While the online takeover continues to grow, it’s happening at a slower pace than a decade ago. Overall spending within the industry is also significantly down compared to previous years.

Senior researcher at Frost & Sullivan, Phil Harpur, said that spending intentions are looking up.

“Strong increases in spending intentions for 2014 are predicted by advertisers across all online general advertising products, in particular for online display and email campaigns,” Harpur said.

The Frost & Sullivan data found that in the main segments of the online advertising sector – namely, online classifieds, search, directories, and general advertising (online display, email marketing, integrated site content and online video) – the following growth occurred:

  • 23% in 2013;
  • online general advertising 12%;
  • online classifieds 11%; and
  • online directories 4%.

It was also found that within the online market, high consumer adoption of smartphones and tablets are driving expenditure in mobile channels.

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