Australian businesses are spending more on digital media ads than ever before, a trend that will only continue to soar over the next few years. As previously highlighted, digital media spend became the predominant form of advertising in 2017, making up more than 54% of the total spend. This year, that number is set to increase to over 56% and continue to rise to 61% by 2021.
According to research from the Zenith Advertising Expenditure Forecasts report for 2018, overall ad spend will increase 2.6% to $16 billion, while global advertising growth will be 4.6%. By 2020, Zenith predicts that 44.6% of all global media spend will be dedicated to online advertising.
How much has been spent in 2018?
Remarkably, Australian businesses have already forked out more than $2 billion in the first quarter alone, of which almost $1 billion was made up by Search and Directories, according to IAB Australia. Advertising expenditure for mobile devices is up to $909 million in the first quarter, a year-on-year increase of more than $39%.
The insane numbers of digital engagement
Two trillion! Incredibly, this is the amount of Google searches conducted every year. Break that down even further and it’s around six billion searches every day. Did you know that there are now more than 250 billion tweets every year? In Australia alone, there are over 15 million active users on Facebook, with 50% of the country logging in at least once a day.
The pure scale and opportunity that this presents to engage with consumers online speaks for itself. Whether it’s to get more traffic to your website, calls straight to your business or visits to your brick and mortar stores, investing in digital marketing is now proven to bring you strong ROI.
The demise of traditional platforms
With the growing amount of businesses’ ad budgets being dedicated to digital marketing, it’s seen a decrease in the amount spent on traditional forms of advertising such as newspapers, magazines and television.
Newspaper ad revenue is expected to drop from $1.29 billion in 2017 to $1.13 billion in 2018, while magazines will see a decline from $377 million to $314 million.
Although TV advertising is not expected to decrease as sharply as print, it’s still predicted to scale back from $3.77 billion in 2017 to $3.76 billion in 2018.
More time spent online
The biggest impact on these figures is the amount of time people are now spending on their mobile, tablet or laptop devices, which is taking away from the effectiveness of traditional advertising.
Between 2011 and 2018, there’s been a decrease of 3% of Australians watching TV, while radio took a hit of 8% in the same time period.
During March 2018, the average Australian was spending 70 hours online for the month, which was made up of an average of 220 sessions per person. The chart below highlights the percentage of Australians online and their time spent for the month, categorised by different age brackets.
Ensure your business stays ahead of the pack
With the huge growth in digital marketing and the slow dying death of TV and print advertising, you have a fantastic opportunity to put your business at the forefront of your industry. You’ll be able to reach more people, convert high-quality leads and get huge brand exposure across a range of platforms.
Not sure where to begin? Need help working on your digital marketing strategy?
Get in touch with us today so we can help take your business to the next level!
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