Aus marketers differ to US, UK in mobile search budget split

Australian marketers are investing more in search advertising than ever before, says digital advertising management firm Marin Software’s quarterly report on global online advertising trends, which finally includes data specific to Australia.

With international advertisers reaching record levels of investment in search on tablets and smartphones during the final quarter of 2012, the report discovered that Australian advertisers allocated their spend equally between the devices. Advertisers in the UK and US markets favoured tablets over smartphones, reflecting consumer preferences, but it was Australia who had the highest percentage of clicks from mobile devices, with a combined 26 percent from smartphones and tablets.

With impressions trumping the click volume, Marin found that paid search click volume rose 34%, with a 65% increase in impression volume. This suggests that while Australian advertisers are spending more on search advertising, “there is still vast opportunity for them to optimise their SEM campaigns,” says Nick Gill, managing director, Marin Software Australia.

“Finally Australian marketers can benchmark their campaigns against local spends and underrepresented channels,” he adds.

In another interesting discovery, Marin’s data indicates that the average click-through rate in Australia for campaigns on smartphones is on par with that of desktop computers in a unique trend to what is happening globally.

Australia has also experienced a higher average CPC than its global counterparts in click-through rates from Facebook. In this instance the social network is viewed as a cost-effective alternative that  when pitted against traditional search and display.

The full report can be downloaded here.

 

Online ad spend to hit $4.3b in 2015, but government still absent

Online advertising expenditure is forecast to grow to $4.3 billion and command a greater share of the advertising dollar than newspaper or TV by 2015, says the Interactive Advertising Bureau (IAB), but government spend remains embarrassingly low.

In its ‘Online Advertising Expenditure Report’ (OAER), the IAB reports an ad spend of $2.66 billion in Australia for 2011, representing double digit year-on-year growth of 17% for the industry.

Conducted by PricewaterhouseCoopers (PwC), the report forecasts that online advertising will comprise 29% of advertising expenditure in 2015, up from 21% last year, while newspapers and free TV are expected to comprise 26% each.

According to the CEO of IAB Australia, Paul Fisher, the results mirror the strong growth being experienced by online advertising in the US, UK and other international markets.

“With the current challenging financial climate predicted to continue, we believe advertisers and their agencies will increasingly turn their attention and budgets to the branding and direct response opportunities that can only be found online,” Fisher says.

Overall market growth was powered by the search and directories category which now comprises 53% of the total spend, valued at over $1.4 billion in 2011. General display advertising accounted for 24% of the total spend, while classifieds advertising accounted for 23% of the total spend.

The general display category achieved just 4% year-on-year growth in 2011, but grew strongly in the second half of the year, up 17% on the same period in 2010. Within the category, video advertising performed well with 31% year-on-year growth.

The FMCG and retail sectors started to show higher adoption of online advertising over the year, while the motor vehicle category recorded the highest growth of any industry sector at 13%.

Fisher comments that government spend for the year remained embarrassingly low.

“In the current political climate, with the impending state election in Queensland a federal election in the next two years, I would expect to see a strong surge in the advertising expenditure online by all state and federal political parties,” he says.

Yahoo display and search revenue falls

While Google’s ad revenue is on a high, Yahoo is in decline with drops in both display and search advertising revenue for quarter four, 2011.

The search group also experienced decline in its overall revenue and net income. Excluding commissions paid to partners, Yahoo’s revenue dropped 3% to $1.17 billion for the quarter ended 31 December, compared with $1.21 billion in the same period last year.

Display ad revenue dropped from $567 million to $546 million year over year, a decrease of 4%. Search revenue was down 3%, falling to $376 million from $388 million.

Having only been in the job three weeks, newly installed CEO Scott Thompson outlined his plans for the year ahead: “In 2012 we will be aligning resources behind key areas of focus to enable us to move aggressively in market and grow our business, bringing innovative new products and experiences to both our users and advertisers.”

The company released the following fourth quarter 2011 revenue highlights:

  • Display revenue excluding traffic acquisition costs (ex-TAC) was $546 million, a 4% decrease compared to $567 million for the fourth quarter of 2010,
  • display revenue was $612 million, a 4% decrease compared to $635 million for the fourth quarter of 2010,
  • search revenue ex-TAC was $376 million, a 3% decrease compared to $388 million for the fourth quarter of 2010, and
  • search revenue was $465 million, a 27% decrease compared to $640 million for the fourth quarter of 2010.

In brighter news for the company, income from operations increased 10% to $242 million in the fourth quarter of 2011, compared to $220 million in the fourth quarter of 2010.

With more than 130 sites across the global Yahoo! Publishing Platform, the firm plans to increase its digital footprint in 2012 and has invested in lifestyle, mail and social TV apps to boost its network.

An agreement between Yahoo, AOL and Microsoft allows ad networks operated by the three companies to offer each other’s premium, non-reserved online display inventory to their respective advertising customers.

Google: helping drunks and under investigation

Now for your weekly fix of Google news. Google and Yahoo have decided to further delay their controversial search-advertising deal following the announcement of investigation by the US Department of Justice.

The agreement, announced just after Microsoft’s bid for Yahoo fell apart, will let Yahoo run Google ads with Yahoo’s search results and on some Yahoo sites in the US and Canada. Critics have believe the deal will hurt competition and lead to higher prices, since Google and Yahoo hold the top two market-share positions in search.

“When we announced our advertising agreement with Yahoo in June we agreed to delay its implementation until October to give regulators time to look at the details,” a Google spokesperson explains, “As we are still in conversation with the Department of Justice, we have agreed to a brief delay in implementing the agreement while those discussions continue.”


Still in Googleland, the company has decided to adapt its free email service to help people who have a tendency to send drunken emails that they wake up to regret.

Mail Goggles software starts automatically after dark and on weekends, when people are at there most likely to send intoxicated emails and requires that five simple math problems be answered correctly in less than a minute in order to send.

“Sometimes I send messages I shouldnt send,” Gmail engineer Jon Perlow says, “Like the time I told that girl I had a crush on her over text message. Or the time I sent that late night email to my ex-girlfriend that we should get back together.”

Imagine the great wars that could have been prevented if this application could be used in everyday conversations.