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Advertising in Australia shifting to mobile devices

Staff writer |
Mobile search advertising in Australia is growing rapidly with almost 30 percent of paid search links being served on smartphones and tablet computers, according to a report by Telsyte.

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With Australians spending more time on post-PC devices, search advertisers are following their audience to their mobile devices. According to Telsyte, the Australian mobile paid search market is set to reach $430 million in 2013, or around a quarter of an estimated $1.74 billion paid search market.

Ad listings are increasingly appearing on smartphones and tablets as ordinary Australians shift their digital habits to mobile devices. Telsyte estimates there are currently 14 million smartphone and 7 million tablet users in Australia and nearly 30 percent of paid search links were served onto mobile devices in Q2 2013, growing to 33.3 percent by the fourth quarter.

Telsyte research director Foad Fadaghi says there has been a lack of clarity about the consumption of, and spending on, mobile search advertising in Australia: "Mobile device search advertising is growing faster than most observers realise so we have published a complimentary report to assist marketers in understanding this significant trend".

Telsyte has found that the Australian mobile paid search market is set to reach $430 million in 2013. This equates to almost 25 percent share of the $1.74 billion paid search market. The mobile paid search market is growing at a 17 percent compound quarterly rate, making it possibly the fastest growing advertising medium in Australia.

Tablet paid search is the largest segment, expected to generate $240 million or 56 percent of the total mobile paid search market in 2013. By 2017, Telsyte forecasts mobile to make up more than half of the Australian paid search market. Mobile paid search will become the largest digital advertising product segment in Australia by 2018.

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