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Digital Horizons
Brand News: Online Adverting Increases by 9.7% in Australia
Unlock the secrets of the booming internet advertising landscape with insights that could redefine your marketing strategy. With video advertising surging by 18.6% and digital audio not far behind with a 23.6% increase, it's clear that traditional display formats are losing their luster. Discover why video content across platforms like YouTube, TikTok, and LinkedIn is now a must-have element for brands aiming to capture attention and engagement. We'll also unravel how the evolving dynamics of search advertising, despite higher costs, continue to draw significant investment.
Join us as we dissect the PwC report's revelations and what they mean for your advertising budget. We delve into the impressive role connected TVs play in the video advertising boom and contemplate whether digital audio is the next frontier for untapped opportunities. With firsthand insights from our ad accounts and clients, we discuss why brands are reallocating resources to more interactive and measurable campaigns. Don't miss this chance to learn how to maximize your brand's outreach with innovative video and audio strategies.
The Digital Horizons Podcast is hosted by:
James Walker - Managing Director WHD
Brian Hastings - Managing Director Nous
Welcome back to Brand News Today. The article that we're looking over is internet advertising spend reaches $15.6 billion, with a growth rate of 9.7%. This is a report that's been released by PwC in September. It's for the period ending in June 30. And I mean 9.7% is a pretty strong increased year on year for advertising spend, but this has been largely driven by video advertising, which is up 18.6%, and followed by search, which is up 10.4%.
Speaker 2:Yeah, Exciting figures there and kind of ties in with what the updates have been talking about. With YouTube and video display. They seem to be killing it at the moment.
Speaker 1:It really is taking charge, isn't it? Such a massive growth, 18.6% year on year, for video advertising, and I mean we're seeing it within our ad accounts and all the clients that we're working with. We're just more and more spending on video content, yeah, and whether that's in Meta or if it's in TikTok, if it's on YouTube, even LinkedIn we're now starting to focus more and more on the video side of things, and I feel that brands just need to get involved.
Speaker 2:Yeah, I think there's a lot of rumors or murmurs that search is declining. It isn't. It's 10.4% up in the Australian market.
Speaker 1:I think that it's because the cost per clicks are fucking increasing so much that you have to yeah, yeah, the spend is going up. Google's profits are increasing from these clicks, and so people have to spend 10% more just to be able to maintain the positions and search rankings.
Speaker 2:Yeah, absolutely Interesting, though in the article it shows some of the losers in the internet format space standard display formats. So we're talking medium rectangles, banner advertising, animated banners. Let's say it fell 13.1% so while video grew, I think it cannibalized or it took a lot of that market from the traditional display ads.
Speaker 1:I feel that this is also like what we're talking about I think it was last week about the focus on bottom of the funnel campaigns right Like your display campaigns, known for not high conversion rates. It's hard to measure, it's good for branding and it's good for getting your name out there, but in terms of actual measurable results, it's a challenging one. So I feel that's why we're seeing this shift.
Speaker 2:Yeah, absolutely. It's kind of being relegated to the retargeting only in a lot of cases and the bulk of our budgets for that brand outreach trying to introduce to new customers is being spent on video.
Speaker 1:It is, but it's so cheap to reach people. Look, I run a cost per view campaigns of hitting three cents a view sort of thing.
Speaker 2:Imagine the impact that has versus your CPC display campaign, which is going to be forgotten very quickly. We did cover in social platforms the other week that it is still worthwhile having a static or carousel ad to follow a video ad that someone's seen, because they can still get good click-through rates in the social format. One other point to note in this article is digital audio performed strongly over the year, increasing 23.6% in terms of media spend in Australia. We already covered off in another brand news that the listenership increased dramatically and it's obvious that that's performance is being reflected in how much people advertisers are spending on the platform. So that's the big winners video search and audio advertising digitally. Also, within that video growth, the lion's share of it has been on connected TVs. So YouTube and display and catch up TV on your main lounge room.
Speaker 1:TV. We've got to start trialling some of this audio advertising. It's a space I haven't really got into so far, so maybe might even give it a go for advertising this channel and just see how it performs in terms of cost for reach and whatever other metrics you want to try and measure it by. But it might be a good opportunity to test some of that out.