Australian Online Search Market 2008-09 and Future Trends

Saturday, 2 January 2010

Despite a slowdown induced by the Global Financial Crisis, Australia's online search advertising market achieved a 30% growth rate during 2008-2009.

According to the Australian Online Search and Directories Advertising Market 2009-2013 report released by consulting company Frost and Sullivan, online search is one of the most active areas of online business.
Phil Harpur, Senior Research Manager at Frost & Sullivan, mentioned that consistent high advertiser satisfaction combined with strong level of search activity make online search a stand out segment in terms of growth in the overall digital advertising.

Google still dominates with almost 90% of total paid search market share in 2008-2009. Bing has shown slow but steady growth worldwide, however it has struggled to dent Google's dominant position in Australia.

In terms of trends and insights for the years to come, Frost & Sullivan notes that

- Boundaries between online search and online directories will fade with search engines trying to invade this segment of the market (For example Google Maps listings)

- Online Directories will rely more and more on online advertising as advertisers will tend to prefer free listings rather than paid ones.

- SEM and SEO are getting more widely adopted simultaneously rather than exclusively. With more skilled individuals combined with the need for integrated strategies, Frost and Sullivan predicts that SEM will be deployed with SEO.