Online Advertising Increases at the Expense of Traditional Media
"Online advertising will continue its romp until at least 2010", according to an article in the Sydney Morning Herald this week called "Online will just keep getting bigger" by Paul McIntyre; "by, then it is expected to be the third biggest generator of advertising revenue in the Australian media sector - behind TV and newspapers - with $1.78 billion".
It has been forecasted in a recent analysis by PricewaterhouseCoopers (PwC) that the increase will come at the expense of free-to-air TV, radio and newspapers and specifically that internet access revenues would jump from the $1.57 billion figure obtained last year to $3.5 billion in 2010.
One direct result of the increase will be the increasing popularity of the use of the internet on mobile phones and PDA devises and the availability of WiFi on these devices. Last Thursday, Microsoft showed a prototype of a mobile phone-based computer that could one day find a use as a cheap PC for emerging markets.
Director of PmC, Mr Liebmann was unsure about quantifying the revenues and types of content which would prove successful on mobile devices but was certain that the material must be able to be viewed or used across multiple devices.
With regards to traditional media, he said that it had yet to figure out the convergence of entertainment, media and communications technology and the shifting of the balance of power from those that own entertainment and media to those that consume it.
It was reported in an article "Banks take the prize as digital pushers" that at the Interactive Marketing and Advertising Trends forum last week, NNR boss Andrew Reid said that in the June half year the number of companies advertising online rose 28 per cent to more than 2500 and the number of online campaigns 53 per cent to just above 6000.
This appears to be a clear indication that the trend towards online advertising and marketing is going to significantly affect the spending budgets of many Australian companies, specifically with regards to the optimisation of their 'web-strategy' and the maintenance of their websites.
