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Internet advertising to top 50 per cent of Australian advertising by 2019

advertising digital reach internet

By the time 2019 rolls around, over half of the revenue brought in by Australia’s advertising market will be from internet advertising.

PwC’s 14th annual Australian Entertainment & Media Outlook report has forecast the direction of advertising in Australia over the next few years, highlighting internet advertising as the fastest-growing sector.

Advertising spending is expected to hit $16.4 billion by 2019, and $8.3 billion of that is forecast to come from the internet advertising market. The free-to-air television advertising market is expected to see spending reach $3.8 billion, while newspapers and radio are forecast to reach $1.5 billion and $1.3 billion respectively.

The report reveals total consumer and advertising spending in Australia decreased to 3.3 per cent in 2014, compared to 6.8 per cent in 2013. Nevertheless, advertising spending is forecast to reach $16.4 billion by 2019, pointing to a compound annual growth rate of 4.8 per cent.

Megan Brownlow, Editor of PwC’s Australian Entertainment & Media Outlook, said now was the time for the Australian industry to ‘have a go’ and innovate.

“The industry is awake to the need to do things differently, and although it’s important to recognise the impact and role of disruptive technologies, true innovation extends to service, relationships, content, distribution, business models and funding,” Ms Brownlow said.

“Look at what the traditional television and radio companies are doing with streaming services, or the agencies with brand-funded content – all of these are digitally supported but they represent much more fundamental shifts in business model.”

Ms Brownlow said the “boon for advertisers” will come with the rise of consumer data available through devices and wearables.

“The problem up until recently had been converting data into insight and targeted offerings – advertisers were data rich but information poor. However the sophistication of technology such as ‘context engines’ now allows advertisers to target and customise their offerings depending on what consumers are doing, where they’re doing it, even who they’re doing it with.”