Internet advertising growing in leaps and bounds

Internet advertising is slated to tip $2 billion in 2009, the Interactive Advertising Bureau Australia (IAB) has estimated.

Based on data from a sample of over 1,000 website properties in Australia, IAB found that in 2008 internet advertising increased 27% to $1.7 billion, up $364 million on 2007 ($1.34 billion). But whether, or to what extent, the global financial crisis hinders growth estimates for 2009 remains to be seen.

The Search and Directories category remains the key growth area. Year on year this category grew by 30% to $807 million. In Q4 2008, the sector grew by 27% compared to the corresponding period in 2007, to $224 million. It also grew by 6% over the third quarter in 2008, which is the critical figure since the 'credit crunch' began to bite during this period.

Other key findings:

• Display Advertising grew by 27% in 2008 to $465 million and by 24% year-on-year in the fourth quarter, to $130 million, 4% up on the third quarter of 2008 in terms of advertising spend.
• Classifieds grew by 23% for the year, up to $439 million and by 10% year-on-year for the quarter, to $108 million. Compared to the third quarter, this sector showed a drop of 5% - the first ever and possible signs of the slowdown affecting online advertising.