Australia Online Advertising Market Outlook To 2027F

The report provides a comprehensive analysis of the potential of Online Advertising industry in Australia. The report covers an overview and genesis of the industry, market size in terms of revenue generated.

Its market segmentations include by Medium, by Types of Advertising, by Sectors/Industries, by Pricing Models, by Ad Buyers and more; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.

Market Overview:

According to Ken Research estimates, the Australia Online Advertising Market – which grew from approximately AUD ~ Bn in 2017 to approximately AUD ~ Bn in 2022P – is forecasted to grow further into AUD ~ Bn opportunity by 2027F, owing to the rising internet and smart phone penetration in the country as well as the rapid adoption of social media in the country among all age-groups.

• Widespread adoption of a standard format influences the effectiveness of advertising in online advertising market.

• Our report offers the challenges of advertising when a cost savings technology (that demands standard ad design) limits the ability of an ad format to grab user attention in Australian online advertising market. We also explore remedies to these challenges.

Key Trends by Market Segment:

By Type of Advertising: Search advertising accounted for the highest share in the industry owing to the rise of keywords-based advertising on not just search engines but also e-commerce platforms. Social media advertising received the second highest digital ad spending followed by display, video, audio and other types of ads. Social media advertising showcased the fastest growth due to the introduction of new ad formats such as shoppable ads, influencer marketing and more.

By Medium: Due to the increasing penetration of smart phones and tablets in the country, mobile medium accounted for over ~% of the digital ad spend and received a greater share in the digital advertising expenditure in 2022P. The widespread use of social media through mobile devices has also propelled the shift towards mobile advertising more than desktop advertising.

Competitive Landscape

There are a large number of advertising agencies operating in Australian Online Advertising Market. The top five holding companies including Saatchi & Saatchi Australia, The Works, 303 Mullen Lowe, BCM Group, ROICOMAU Growth Agency, Ogilvy Australia, dominated the market in terms of billings. These agencies compete on various parameters such as pricing of the services offered (average hourly rate), minimum project size, service portfolio, major clientele and flexibility. The supply side of the digital advertising market on the other hand is dominated by the duopoly of Google (including YouTube) and Facebook (including Instagram).

Future Outlook

Demand for online advertising services is projected to continue to grow at a high rate over the next five years, as more businesses develop an online presence or channels through which their services can be accessed over the internet. Growth in non-messaging data from mobile phones, supported by the continued rollout of XG mobile networks, is also forecast to drive demand for online advertising services. Online Advertising Industry revenue is projected to grow at an annualized ~% over the five years through 2022-2027F.