The Australian Bureau of Statistics has revealed that online advertising is an important way to reach audiences.
It is also a key way for brands to reach people across the country and increase their reach, particularly among young Australians.
The ABS says that online ad spending has increased by 2.7 per cent in the past 12 months.
Online advertising is not as important for Australian businesses as it was in the 1990s, but there are still plenty of opportunities for brands and marketers to reach their audience.
Here are some ways to manage your online advertising:Find out more about online advertising.
The digital advertising industry is growing at a rapid rate and it is now more than double the size of the retail sector.
It now accounts for 13 per cent of the Australian economy and employs over 4.6 million people, the ABS said.ABS chief economist Mark Zandi said online advertising had become an important part of Australian business.
“Online advertising was around for a while and then the internet really took off and the value proposition that people can get out of it has increased,” Mr Zandi told AM.
“The key thing for companies is to use it, they’re not going to stop using it but they’re using it to their advantage.”
Mr Zandi expects online advertising to continue to grow, particularly in emerging markets such as China.
“We’re seeing the internet driving the digital advertising sector to a degree we haven’t seen in the history of the industry,” he said.
“So the real question is what the future holds for this industry?”
Online advertising in the digital space is changing.
While the size and scope of advertising are still limited, there are plenty of companies and organisations that are taking advantage of the opportunity.ABC digital editor, Emma Fonseca, said she had not seen any signs of any decline in the use of the internet by the major media organisations.
“I don’t think there’s a trend in any of the media organisations to stop their own advertising,” she said.
In the US, the digital media and technology industry is experiencing a resurgence as advertisers increasingly use the internet to reach consumers.
“Digital is growing rapidly, but we also have to look at how that impacts the advertising industry,” said Mark Rylance, CEO of marketing agency Moxie.
“It’s changing the industry, it’s making it more efficient and it’s creating more opportunities for digital advertising to flourish.”
Mr Rylage said the industry needed to be more mindful of its business models and how it is changing the way advertisers engage with their audiences.
“In many ways it’s changing from an ad-driven business model to a digital model,” he explained.
“For advertisers, they don’t necessarily need to spend a lot of money on digital advertising anymore, so they are more likely to invest in local advertising, online advertising and social media ads.”
Mr Nevin said advertisers were spending more on digital campaigns to get their message out.
“You can now see brands using their social media platforms more effectively, as well as other digital advertising channels,” he told AM, “so brands are using those digital channels to engage with potential customers and get them to buy from them.”