Internet Ad Market Booming
Australia’s nascent Internet TV advertising industry is set to grow by 42 percent from 2011 to 2016, increasing in value from $54 million to $311 million, according to research outfit Frost & Sullivan.
Its Australian Online Video Market report says the increased growth outlook follows an explosion in online video streaming in Australia, up 550 percent from less than 2 billion videos in 2007 to 11 billion in 2011.
The result was primarily driven by cheaper bandwidth, greater choice of online content and higher data caps, F&S says.
Individually, Australians are now watching around 10.2 hours of online video each month and are quickly catching up to US and UK consumers who watch 17.3 and 17 hours of online video per month, respectively.
Phil Harpur, F&S senior research manager, said many factors are making online video attractive to Australian viewers.
“Consumers are increasingly using their PC/laptops, tablet PCs and smartphones for entertainment, he said. “They’ve become comfortable with the idea of subscription-based video content.
Also, “video production is becoming cheaper by the day. Internet-capable TVs are more common, as is high definition video.”