Australian search ad market to hit $3.5bn by 2019

The Australian online search advertising market is starting to slow, but is still on track to grow to $3.52 billion by 2019, according to Frost & Sullivan.

The market grew an estimated 17% between June 2013 and June 2014, down from the 23% growth rate achieved during the prior 12 months.

Frost & Sullivan expects the total market to grow at a CAGR of 12% between 2014 and 2019. Search advertising will account for all of this growth, while the online directories market will remain flat in real terms through to 2019.

“Mobile search advertising continues to grow strongly, as consumers increasingly browse and research on smartphones and tablets,” said Frost & Sullivan Senior Research Manager for A/NZ ICT Phil Harpur.

“Smartphones with GPS technology can narrow a search to businesses within a reasonable distance of the user’s current location. Online directories like Yellow Pages are seeing strong growth on mobile platforms.”

The market is evolving, with search marketing agencies working to provide more holistic digital marketing strategies instead of focusing solely on search engine optimisation services.

Google still dominates the Australian search advertising market, but Microsoft’s Bing has increased its market share over the last year by focusing on improving the user experience.

The online directories market is meanwhile placing greater emphasis on social media, the research firm said.

“The market leader in the online directories market, Sensis, is repositioning itself as a digital marketing and information services and directories business for SMEs providing a range of digital media services to complement its online directory core offerings,” Harpur said.

Image courtesy of Vanguard Visions under CC