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Frost & Sullivan: Revenue from Online Classifieds Advertising up by 50% from a year ago

  • 30 May, 2007 10:43

<p>Total online classifieds advertising revenue grew 50 per cent year-on-year. This growth was driven mainly by increasing audience shift from print to online media.</p>
<p>New analysis from global growth consulting company, Frost &amp; Sullivan (www.frost.com), The Australia Online Classifieds Advertising Market 2006 – 2010, reveals that revenues in this market totalled AU$308 million* in 2006 and is forecasted to be worth AU$868 million* by end-2010, growing at a CAGR of 29.6 per cent* (2006-2010).</p>
<p>According to Darryl Nelson, research manager at Frost &amp; Sullivan Australia, “this growth is set to continue, driven by new advertisers and increasing premium inventory adoption.”</p>
<p>The report, which is the first ever detailed study of the online classifieds market in Australia, found that the online employment advertising segment commanded the largest slice of the online classifieds advertising revenue pie, at 44 per cent, followed by real estate (27 per cent), automotive at 19 per cent and general/personals at 10 per cent.</p>
<p>Seek led the online employment classifieds segment, realestate.com.au was the clear market leader in the online real estate segment and carsales.com.au led the automotive classifieds. “The market shares for Seek, REA and carsales are dramatically emphasised when measured in each of their respective industries,” says Mr. Nelson. “This is the first time this sort of view has been possible in Australia.”</p>
<p>Adds Mr. Nelson, “in all the segments, growth was led by an overall shift by advertisers from print to online media. However, future growth may be curtailed by saturation among key advertiser groups and falling advertiser ROI (return on investment).”</p>
<p>Nevertheless, the research revealed that online classifieds will command an increasing share of the key organisations’ marketing strategies and budgets.</p>
<p>“Automotive and real estate advertisers typically have larger classifieds budgets than employment advertisers, but spend less online. Our survey revealed that most advertisers allocated only up to 25 per cent of their budgets online in 2006”, but this is set to grow significantly, says Mr. Nelson.</p>
<p>The advertiser survey, which forms part of Frost &amp; Sullivan’s online classifieds advertising subscription, was conducted earlier this year with 120 senior management level executives, with control or insight into the business marketing budget and strategy.</p>
<p>Among the benefits advertisers cited for choosing to advertise online was that online classifieds increased leads and increased speed to market. This was particularly relevant for automotive and real estate advertisers.</p>
<p>The Australia Online Classifieds Advertising Market 2006 – 2010 Demand &amp; Supply reports form part of Frost &amp; Sullivan Australia’s digital media subscription, which will also include research on the following segments: General Online Advertising (August 2007) and Paid Search &amp; Directories (November 2007). This service can be purchased separately or bundled as a full report.</p>
<p>All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Analyst interviews are available to the press.</p>
<p>If you are interested in a virtual brochure, which provides the methodology adopted for this research, a brief synopsis along with a complete table of contents, then send an e-mail to Sharmin Jassal, Corporate Communications, at sharmin.jassal@frost.com with your full name, company name, title, telephone number, fax number, city, state, country and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.</p>
<p>Frost &amp; Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost &amp; Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com</p>
<p>*The information and market sizing estimates in The Australia Online Classifieds Advertising Market 2006 – 2010 report represent an update to data originally published in February 2007 in the Australia Online Advertising Market 2006 – 2010 report. The updated information is a result of improved data regarding revenues, segmentation and growth trends published by major market participants in their half year 2007 annual reports and new information regarding market forces, relationships and advertiser trends.</p>

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