Question 1

Is the digital advertising market still growing at its historical pace?

Accepted Answer

The market is entering a maturation phase, with the growth rate cooling to a 7% CAGR compared to the 19% CAGR recorded between FY12 and FY15. Despite this slowdown, total digital spend is forecast to reach A$7.3 billion by FY20, accounting for 50% of the total Australian advertising market.

Question 2

Where are the strongest growth opportunities within the digital sector?

Accepted Answer

Digital Display is the clear leader with a forecast 10% CAGR through FY20, outstripping Search at 5% and Classifieds at 6%. This growth is almost entirely concentrated in Mobile and Video, with Mobile AdEx having maintained a CAGR exceeding 150% since FY12.

Question 3

How quickly is the transition to automated ad buying happening?

Accepted Answer

The shift is rapid, with programmatic trading expected to move from its current 20-30% share to between 60-70% of total budgets within the next three years. This transition is being accelerated by a consumer shift toward SVOD and Catch-up TV, which show net growth deltas of 28% and 14% respectively.

Question 4

Are digital revenues successfully replacing the money lost from traditional media?

Accepted Answer

No, a significant value gap persists as the industry captures only 71 cents of digital growth for every A$1 that exits traditional media. This imbalance is particularly severe for print publishers, who are facing a projected -12.4% CAGR decline in revenue through FY20.

Digital AdEx Market Outlook – the hunter becomes the hunted

Abstract

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Abstract

Key Takeaways

Frequently Asked Questions

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