The Australian digital media market has seen tremendous growth in various areas, including a significant rise in use of smartphones and tablets, an increase in online retail and a surge in the online advertising and video market.
Smartphones and tablets have also extended the Australian online shopping experience for both consumers and retailers. In 2013, Frost & Sullivan said purchases via mobile devices grew by 30%, accounting for A$4.9 billion ($4.45 billion) or 27% of all online shopping purchases. Online spending on tablets increased from 5% in 2011 to 8% in 2012 and 10% in 2013.
The research firm predicts that purchases via mobile devices are predicted to grow strongly a strong 27% in 2014, and to reach A$14.1 billion by 2017, growing at a CAGR of 30% over the next four years.
Consequently, a strong momentum in the Australian mobile advertising market is also expected to continue.
In 2013, the mobile advertising market grew over 100% in 2013. A similar growth rate is predicted for 2014, driven primarily by high penetration rates of smartphones and tablets.
“Use of mobile devices multi-functions centred around mobile media capabilities, in particular, access to web browsing and apps, is driving many opportunities for advertisers,” Frost & Sullivan said. “Agencies and brands have become very aware and accepting of the importance and effectiveness of mobile advertising.”
Australia is among the leading nations for rich media ad production and rich media ad formats will continue to grow strongly. Australia's fast 3G and 4G mobile networks and high penetration of smartphones and tablets, makes for an ideal environment for the creation of rich media content by online publishers and mobile agencies. Mobile ad networks / agencies such as Big Mobile, InMobi and MobeSeek produce the majority of their new inventory using rich media.
Other predictions by the research company in the digital media market include: more online video ad inventory will be traded via ad exchanges, online video to make significant inroads into the broadcasting and Pay TV markets, Android to continue to taking market share away from Apple, and tablets to further become mainstream consumer devices.