Internet advertising continues to boom
By Mike Hanlon
October 27, 2005
October 28, 2005 The Internet juggernaut continues to roll and gather pace as evidenced by the 26% growth of Advertising Revenues for the first six months of 2005 over the first half of 2004. Internet advertising revenues for the first six months of 2005 were approximately US$5.8 billion, a new record. Similarly, the Interactive Advertising Bureau (IAB) is continuing to grow with an Australian chapter today being added to the existing 17 countries and pending IABs in Russia, Columbia and Brazil.
The Interactive Advertising Bureau already has chapters in Argentina, Canada, Czech Republic, Europe (federation of 15 associations), Finland, France, Greece, Ireland, Italy, Mexico, Netherlands, Poland, Puerto Rico, Singapore, Spain, UK and the USA.
Search marketing continues to dominate advertising expenditure accounting for $4 in every $10 spent (40%), and double that of display advertising (20%). Classified advertising accounts for 18% of revenues with Rich Media taking 8%, Referrals/Lead Generation 6%, Sponsorships 5%, E-mail marketing 2% and Slotting Fees 1%.
Concentration of revenues based on the top 10, top 25 and top 50 has remained consistent with the top 10 sites taking 74% of all revenues, the Top 25 taking 87% and the top 50 accounting for 96% of all internet advertising revenues.
CPM (cost per thousand impressions) pricing continues to gain favour with buyers and sellers, accounting for 48% of advertising revenues (up from 45% 12 months ago) with performance-based deals up to 40% (from 38%) and hybrid dealsdown to 12% from 17% last year.
A copy of the report can be downloaded here.
The new Australian IAB
The six major Australian online publishers - Fairfax Digital, Google, News Interactive, ninemsn, Sensis, and Yahoo! - together with the Australian Interactive Media Industry Association (AIMIA) have announced the formation of the Interactive Advertising Bureau (IAB) Australia. With launch funding from the major publishers and AIMIA providing administration, management and infrastructure services, the primary Mission of the IAB Australia is to promote and further develop the Interactive Advertising and Marketing Industry in Australia and increase the share of advertising and marketing dollars that Interactive Media captures in the marketplace. Clifford Rosenberg, Inaugural IAB Chair and Managing Director Yahoo! Australia & NZ, said "We are delighted to launch IAB Australia. Our first priorities are to work with the industry to introduce IAB International Standards and guidelines, ensure the timeliness and transparency of industry data, and promote the use of standard definitions and terminology across the advertising industry." The formation of the IAB is further recognition of the growing importance of the interactive advertising industry. In the last financial year, the industry experienced a 63% increase in Australian interactive ad spend, making it a commercial cornerstone of the Interactive Media Industry. Commented John Butterworth, Chief Executive Officer of AIMIA: "Consistent with our broad charter to broadly develop interactive marketing and advertising as an integral part of the digital content industry, we are very pleased to be able to assist with the launch and ongoing operation of the IAB. This is a great opportunity to leverage AIMIA's work in other interactive sectors and promote interactive advertising to the broader AIMIA membership base, the business community at large, and government. "We are Delighted to welcome into the IAB fold our colleagues in Australia." Said Greg Stuart, president & CEO of the IAB (U.S.). "This new international chapter allows the opportunity to develop measurement standards that travel across borders, as well as provide an open dialogue among global marketers, publishers, and agencies to creatively and effectively build this new medium." The IAB Board today also announced the appointment of Patty Keegan as Manager, IAB, to drive the activities and initiatives of the Bureau during its launch period. Patty is former National Director of Carat Interactive IAB Australia was officially launched at an industry briefing immediately before the Internet Awards 2005 in Sydney on October 27th, 2005. Following a six month launch period, membership of the IAB will be opened in April 2006 to Australian actively involved in the sale of interactive advertising and marketing. In association with AIMIA, Associate and Affiliate memberships will also be made available for technology and service providers as well as other organisations from related industries. AIMIA is the peak body representing the Interactive Media and Digital Content industry in Australia. Founded in 1992, AIMIA promotes growth and success in the Australian interactive media industry and its services include acting as a lobby group, providing industry news, hosting professional functions, and organising its annual Interactive Media Awards. AIMIA members are drawn from the broad spectrum of the Australian IT industry, including producers and developers of digital content and applications for interactive platforms such as broadband and narrowband internet services, interactive television, wireless, CD/DVD media and games consoles. AIMIA also delivers export assistance to members through the TradeStart program in partnership with Austrade. AIMIA is providing IAB Australia with a variety of services including membership management, infrastructure, administration, liaison with other AIMIA Industry Development Groups, and promotion to the general Interactive Media Industry, broader business community, and government.