Market Insights Advertising & Media Advertising

Search Advertising - Australia

Australia

Ad spending in the Search Advertising market in Australia is forecasted to reach €5.75bn in 2024.
The sector is expected to exhibit an annual growth rate (CAGR 2024-2029) of 5.37%, leading to a projected market volume of €7.47bn by 2029.
When compared globally, the United States will account for the highest ad spending (€127.10bn in 2024).
Within the Search Advertising market, 51% of total ad spending is anticipated to come from mobile in 2029.
The average ad spending per internet user in the Search Advertising market in Australia is projected to be €223.00 in 2024.
Australia's Search Advertising market is experiencing a shift towards mobile-first strategies, reflecting the country's high smartphone penetration and digital-savvy consumer base.

Key regions: Australia, Japan, United States, Europe, Asia

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Analyst Opinion

The Search Advertising market in Australia is experiencing significant growth and development in recent years.

Customer preferences: Australian consumers are increasingly relying on the internet to search for products and services, making search advertising a crucial tool for businesses to reach their target audience. With the rise of smartphones and the increasing accessibility of the internet, more and more Australians are using search engines as their primary source of information. This shift in consumer behavior has created a strong demand for search advertising services in the country.

Trends in the market: One of the key trends in the Australian Search Advertising market is the growing importance of mobile advertising. As smartphone penetration continues to increase, advertisers are recognizing the need to optimize their campaigns for mobile devices. This trend is driven by the fact that Australians are spending more time on their smartphones, and mobile search advertising offers a more targeted and personalized approach to reaching consumers. Another trend in the market is the increasing adoption of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, making the process more efficient and cost-effective. This trend is driven by the desire for advertisers to reach their target audience in a more precise and targeted manner, while also maximizing their return on investment.

Local special circumstances: Australia has a highly competitive advertising market, with both local and international players vying for a share of the market. This competition has led to innovative advertising strategies and technologies being adopted in the country. Australian advertisers are known for their creativity and willingness to experiment with new advertising formats and platforms.

Underlying macroeconomic factors: The strong growth in the Australian Search Advertising market can also be attributed to the overall economic stability and growth in the country. Australia has a strong economy, with a high level of consumer spending and a stable business environment. This provides a favorable backdrop for businesses to invest in advertising and marketing activities, including search advertising. In conclusion, the Search Advertising market in Australia is experiencing significant growth and development due to changing consumer preferences, such as increased internet usage and the rise of mobile devices. The market is also influenced by trends such as the adoption of programmatic advertising and the high level of competition among advertisers. Additionally, the overall economic stability and growth in Australia provide a favorable environment for businesses to invest in search advertising.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on search advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers search advertising that is displayed on search result pages or next to organic search results.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global search advertising by aggregating advertising revenues from key players (Alphabet (Google), Microsoft (Bing), Baidu, Amazon, Alibaba, etc.). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, and digital consumer spending by country.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.