The company’s Australia Online Advertising Market report found total online revenues grew by 62 per cent in 2006 to $1.01 million and are expected to triple to $2.95 million in 2010.
Strong growth was seen in all the main product segments: paid search led by growing more than 100 per cent, followed by general advertising (48 per cent); directories (60 per cent) and classifieds (49 per cent), the report found.
The explosive growth in paid search was due mainly to search engine pay-per-click keyword advertising, which outpaced both contextual search and paid directory listings.
Google was the biggest winner in the local online advertising market, growing to become equal market leader in Australia with Telstra’s online unit Sensis.
Employment classified specialist Seek became the third largest online publisher in Australia, overtaking Fairfax Digital and NineMSN, according to Frost and Sullivan Australia research director Darryl Nelson.
“The strong jobs market in Australia in 2006 drove the classifieds segment, which accounts for 30 per cent of the total online advertising market,” Nelson said.
“Our observation of the market points to paid search continuing to see strong growth in the future, we estimate paid search revenues to grow to $975 million by end-2010, a compound annual growth rate (CAGR) of almost 40 per cent,” he said.
The Frost and Sullivan survey was carried out late last year with senior management level executives split between existing online advertising users and non-users. A total of 462 respondents participated in the survey which looked at advertiser usage patterns, attitudes and intentions.
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