Search continues to dominate internet advertising: PwC
Having been the leader for the past few years of Internet advertising revenue, search advertising shows no sign of slowing down, according to the latest report from professional services company PricewaterhouseCoopers (PwC).
The annual report was released today and demonstrates predicted outlooks for the media and entertainment industries for the next five years. While there’s a lot of information within the report, editor of the Outlook, Megan Brownlow (pictured), said she’s not really surprised by any of it.
“The vision of calendar years is just arbitrary,” she told B&T. “The fact that free-to-air television is flat, the fact that the decline in publishing is slowing, these are, in a way, a continuation of trends. There’s no real shock,” she said
For more detail on the report:
- Read more about consumer magazines here;
- Check out what’s going on in the out-of-home space here;
- Terrestrial radio continues to trump Internet radio;
- FTA TV ad spend is expected to remain flat.
In terms of Internet, which is one of the fastest growing segments of the media and entertainment industry, PwC predicts by 2019 the Australian advertising spend on Internet advertising — which includes search, display, classifieds and video advertising — will reach nearly half of the total ad spend at 48.1 per cent.
And Internet access spending on mobile will storm ahead of wired broadband Internet access.
Search advertising will grow the most out of all areas, expecting to increase by $A2015 million to total $A3971 million in 2019. Other key growth areas include :
- Display is projected to grow by $A872 million to $A2281 million;
- Classifieds will increase by $A434 million to $A1363 million;
- Video advertising will grow by $A432 million to $A608million in 2019.
In the interactive games segment in the Outlook, the Australian advertising spend on games — which include mobile games, physical and digital PC games and console revenues — is projected to increase $A26 million by 2019, up to $A59 million.
The digital sales of games overtook the retail spending for the first time, thanks to mobile and software sales, digital downloads and online subscriptions.
Many brands around the place have also been experimenting with virtual reality (VR), such as Samsung and its coverage of a live birth.
The PwC report predicted VR headsets will enter the mainstream market this year.
This article first appeared in bandt.com.au and is reprinted with permission