Mobile devices offer 'significant opportunities' for Australian online search, directory providers

Advertisers are attracted to high click through rates, low cost per click on mobile devices, says Frost

Mobile devices offer "significant opportunities" for online search and directory providers in Australia, judges Frost & Sullivan.

Australian advertisers are attracted to the relatively high click through rates and low cost per click on mobile devices, according to Frost. As a result, more spending on search advertising is going toward mobile devices.

"The volume of local searches conducted via the mobile web is growing at a much faster rate than via fixed internet connections. Search results from mobile searches are becoming more distinct to fixed internet searches, with a high proportion of mobile searches optimised for location based material. Also click-to-call features are becoming more prominent in mobile search advertising," observes Phil Harpur, senior research manager for Frost & Sullivan's Australia and New Zealand ICT practice.

The research firm forecasts that the Australian online search advertising market will increase at a 16 percent compound annual growth rate of 16 percent through 2018, after growing 23 percent between June 2012 and June 2013. This growth will push online search to a 91 percent share of the online search and directories market in Australia by 2018.

More advertising dollars are going to online search advertising and search engine optimization services. Frost & Sullivan finds that more than half of Australian advertisers are taking money out of traditional media advertising and putting it into search advertising.

"Although Google still dominates the Australian search advertising market, Sensis's search advertising offering, Sensis ClickManager, displayed strong revenue growth in FY2013. Adlux has also established itself as a viable alternative to Google with continued strong growth from a small base," relates Harpur.

Overall, Frost expects Australia's mobile advertising market to increase at a 39 percent compound annual growth rate, reaching $682 million in 2018.

Around 50 percent of Australian firms plan to increase their mobile advertising budget compared to the prior year, with 79 percent saying they would increase mobile advertising expenditure by more than 10 percent, according to Frost data.

For more:
- check out Frost's release

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