Online advertising kills magazines

Published: 16 March 2007.

Online kills magazines, cinema and outdoor

SYDNEY: Online advertising expenditure has overtaken four other mediums, and radio looks to be next on the hitlist, the latest figures from CEASA show.

The latest six-month figures from the Commercial Economic Advisory Service of Australia (CEASA) to June 2006 confirm what most in the industry know already – advertisers are starting to embrace online spending.

The figures show 8.5% of total advertising expenditure was spent online in the six months to June 2006, compared to 6.8% on magazines, 3,6% on outdoor and a meagre 0.8% in cinema. Advertising revenue for online grew to $421 million.

The data also shows radio expenditure is in real danger of being overtaken by online in the next six months. The two mediums are currently on par, both attracting $425 million. Radio was up 2.1% while the internet grew 60.1%.

Despite doomsday predictions for other mediums, newspapers (up 6.3% to $1,073 million) and television (stable at $1,494 million) still demonstrate their strong legacy with advertisers.

According to CEASA, newspapers attracted a majority 36.7% of all advertising revenue, while television was just behind on 32.4%.

Outdoor also grew, by 13.2% to $174 million, and magazines rose 4.0% to $339.4 million. Subscription TV was also up, growing ad revenue by 34.3% to $100 million.

While the figures put both mediums in front of others in the survey, they still are experiencing a downward trend in advertising spend – with total expenditure slowly decreasing over the past five years

Article supplied by Commercial Economic Advisory Service of Australia 09/2006