Search Advertising Budgets to Rise; Calls for Price Transparency
Announcement posted by International Advertising Association (IAA) 01 Dec 2010
Embargoed December 2nd, 2010
IAA Digital Download Leadership Forum, Sydney - Australian marketing decision makers would like to see changes in the search advertising industry, an area in which they plan to increase spending in the next twelve months1.
58 percent of marketing decision makers2 said that pricing offered by search advertising providers should be more transparent, in Newspoll results1 released today.
The Newspoll study was commissioned by the International Advertising Association (IAA) in Australia to investigate attitudes towards search advertising as an aspect of digital marketing. The survey was released at the IAA’s Digital Download event, which takes place in Sydney today.
Respondents were asked for their views concerning the search advertising industry. Of the marketing decision makers who had bought or intended to buy search advertising placements, 68 percent agreed that prices would be lower if there were more search advertising providers.
“Demand for search advertising services is largely driven by the migration of consumers to online, including the mobile Internet,” said Heather Leembruggen, President and Chair, International Advertising Association (Australia Chapter).
“The survey suggests that there are opportunities for industry to come together to improve market conditions for buyers of these services. This highlights the leadership role that exists for industry associations, including the IAA, to ensure that the search advertising industry delivers a fair and effective marketplace to clients.”
Marketing decision makers will increase spending on search advertising despite queries around market competitiveness and price transparency.
65 percent of marketing decision makers intend to spend more on search advertising in the next 12 months. By comparison, just 13 percent intend to increase spending on TV advertising. On average, marketing decision makers2 intend to spend 30 per cent more on search advertising in the next twelve months.
These findings are backed up by a recent Frost and Sullivan study, which predicted that the Australian search and directory market would grow from $1.14bn in 2009-10 to $1.35bn in 2010-11.
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International Advertising Association
The International Advertising Association (IAA), headquartered in New York, was founded in 1938 to champion responsible marketing. The IAA, with its 56 chapters in 76 countries, is a one-of-a-kind global partnership whose members comprise advertisers, media, advertising and public relations agencies, media companies, and academics. The IAA is a platform for industry issues and is dedicated to protecting and advancing freedom of commercial speech, responsible advertising, consumer choice, and the education of marketing professionals. For more information please visit www.iaaglobal.org.
The IAA Digital Download Leadership Forum is the second forum of its kind taking place in Sydney. The inaugural forum took place in March 2009.
1 This Newspoll study was conducted nationally online in November 2010 among n=160 marketing decision makers (persons who makes decisions about where to market/advertise the product/service offered by their company/organisation), including n=102 who have bought search engine advertising in the last 12 months or who intend to buy search engine advertising in the next 12 months.
2 This question was asked of marketing decision makers who have bought or intend to buy search engine advertising.
Notes to Editor
Newspoll research graphs can be supplied upon request.
Contact
Carrie Graham
Encoder Public Relations
Tel: +61 2 9928 1542
Email: carrie.graham@encoderpr.com.au