Online ads to bounce back as slump ends
Almost over in the $500 million online display advertising market with key publishers from advertising recessions saying the sector will return to strong growth in the December quarter after bottoming out last month.
The December quarter income could be as much as 20 percent higher than lst year, meaning the sector could return to pre-downturn growth rates after less than a year in the doldrums. Across the $13 billion media advertising industry, the signs of a revival are strengthening, even though online was the only area to grow in the six months to June and most traditional media are not expected to show solid growth until mid-way through next year. Last week, Ten chairman Nick Falloon pointed to “evidence of the market fundamentals strengthening, such as an increase in the level of general inquiries for advertising”.
News Corporation chairman and chief executive Rupert Murdoch said a week ago that an investor conference US advertising markets were “much better than they were four months ago” and the outlook was strong for Australia, with job advertisements in the first half of September up 10 per cent compared with a year ago.
Online market leader Ninemsn appears to be leading the upturn, with commercial director Kerry McCabe flagging strong growth in telecommunications, media, consumer goods and retail advertising.
“The indicators and the forwards are suggesting strong year-on-year growth,” Mr McCabe said.
“I think it will be in line with projections: double-digit and then some.”
Demand was particularly strong for high-profile brand advertising formats, and the publisher’s online video player was “sold out”, Mr McCabe said.
Yahoo7 chief executive Rohan Lund said there was “a lot of activity for the December quarter”, boosted by increasing interest from advertisers in running behavioural targeting campaigns alongside their online brand advertising.