Photo: Katherine Griffiths
Media buyers expect digital advertising to overtake commercial television ad revenue this year, making it the country’s biggest advertising medium.
IPG Mediabrands Australia is forecasting digital ad spend to grow 18.5 per cent to $4.7 billion in 2014, compared with the total television ad market, which it predicts will grow at 3.5 per cent to $4.2 billion.
“We are expecting digital to become the number one medium in Australia, which was a mantle previously held by TV,” IPG chief investment officer Victor Corones told The Australian Financial Review.
This view is supported by Goldman Sachs, which has forecast digital to take a 36 per cent of the ad market in 2014, compared with television’s 32 per cent.
IPG Mediabrands has forecast an “explosion” in mobile advertising over the next five years. “There is a complete disconnect between the time spent with mobile devices and the ad dollars being directed to the sector. ” Corones says. “It’s just going accelerate more and more as publishers discover better advertising solutions.”
Mobiles are a personal device for most consumers, meaning advertisers have to add value through products such as applications to be effective, Corones adds. “Interruptions are a lot harder to achieve on personal devices so if you’re adding value, you’re more likely to get more receptivity from consumers. It’s obviously an education process for advertisers.”
Another way that brands are moving away from interruptive advertising is through content marketing, a trend that sites like Buzzfeed are seeking to ride.
OMD Australia national head of digital Stuart Bailey says social media spending is dominated by Facebook but he expects Twitter to take more share as it becomes more established in the market.“The massive proliferation of technology platforms (PMD’s) that plug into Facebook and better enable advertisers and agencies to run smarter more efficient and targeted campaigns will continue to inflate the spend in this area,” he said.
Corones says many advertisers had erred in preferring digital mediums to print. “Its about strategically understanding what are your objectives, and what is the role of print and digital,” he says. “When you understand that you probably can find a role for print.”