Content Marketing Blog

Online advertising expenditure to eclipse traditional media

The amount of money spent on online advertising will overtake the amount invested on traditional media for the first time next year.

The Interactive Advertising Bureau of Australia has produced a report which shows that television and newspaper marketing costs will be eclipsed by the capital invested in advertising for the internet as part of a content marketing strategy.

The bureau examined advertising habits across online, video and mobile – with online being divided into three categories:

►general display
►search and directories
►classified

General display experienced just a one per cent jump in revenue in the three months to September, while the entire online sphere saw a ten per cent jump in spending to $813.3 million.

This was up $71 million when compared with the last quarter.

As reported in the Sydney Morning Herald, the Commercial Economic Advisory Service Australia (CEASA) discovered that online advertising will overtake expenditure in other mediums.

CEASA found that spending on newspapers in the first six months of 2012 was $1.5 billion, while investment in online advertising racked up $1.63 billion.

For the September quarter, $22 million was spent on mobile advertising, which is nearly a 200 per cent year-on-year increase and a 24 per cent increase from the previous three-month period.

Email advertising, however, did decline – shrinking to $5.8 million from the June to September quarter, down from $10.5 million.

The most common form of pricing is through cost per thousand impressions (CPM). An advertiser will pay for every one thousand times an ad appears. As a result, if the CPM is $5 then the cost per impression is just $0.005.