An industry forecast showed that online search would account for a huge portion of digital advertisement spending in Australia by 2020.
This means that better pay-per-click (PPC) management services and other online marketing strategies will be more necessary among companies. Banks, gambling websites and the government comprised the three biggest sectors that have been responsible for online ad spending so far in 2018.
Zenith expects Amazon Advertising to increase expenses on online ads later this year, once the company allows ads to appear on its website in the country. Companies should anticipate this particular development since search represents 45% of the market.
As consumers increasingly rely on the Internet for product inquiries, it’s not surprising if they end up on Amazon’s website in the future to look for answers. Investment in paid searches will also increase between 2017 and 2020, as well as social media ads. These two will account for two-thirds of the higher spending on digital ads not only in Australia but elsewhere in the world.
While digital spending in Australia will increase in coming years, the U.S. will lead the growth in global expenses with more than $217 billion of ad spending. China, Japan, the U.K. and Germany complete the top five with different figures ranging between $24 billion and $95 billion.
Australia’s spending on digital ads will amount to more than $13.1 billion from over $12 billion in 2017, although the country will slip to the ninth spot by 2020 from its eight rank last year.
Companies that want to digitalise their presence should no longer focus on just brand exposure or awareness. Some companies might have no resources for an in-house advertising team, but most third-party service providers are more than willing to produce the same results for a lower price.