Media releases are provided as is by companies and have not been edited or checked for accuracy. Any queries should be directed to the company itself.

Frost & Sullivan: Online Classifieds Advertising To See Weaker Growth of 18 percent in 2009 and 2010

Forecasts released in the Australia Online Classifieds Advertising Market 2008-2012, the latest research in Frost & Sullivan's annual examination into the state of the local online advertising industry.
  • 18 May, 2009 11:16

<p>SYDNEY, 18 May, 2009 -- The online classifieds advertising market experienced 26 percent growth in 2008 to finish the calendar year valued at $498 million. In February 2009 the market began to feel the impact of the economic downturn and according to consulting company, Frost &amp; Sullivan, the continued slowdown is likely to result in a much smaller growth rate of 18 percent for both 2009 and 2010.</p>
<p>The forecasts were released in the Australia Online Classifieds Advertising Market 2008-2012, the latest research in Frost &amp; Sullivan's annual examination into the state of the local online advertising industry.</p>
<p>The fastest growing online classifieds sector in 2008 was real estate which experienced 38 percent growth. This was driven by increased yields from existing residential advertisers and volume growth in commercial property advertising. Residential advertising continued to dominate revenues while new segments such as holiday properties are also contributing to growth. During 2009-2011, Frost &amp; Sullivan predicts the sector will further expand with the emergence of rural market classifieds. However, it notes of a significant potential restraint on growth in the shape of industry-owned websites, such as, which now commands the third highest audience in property sites.</p>
<p>Automotive was the second fastest growing sector, increasing by 31 percent. Part of this growth is attributed to the relative immaturity of online automotive advertising and the strong migration from print to online media during 2008. Automotive dealer networks continued to increase their expenditure with online classifieds, especially through growing inventory volumes. In early 2009 however the segment began to slow as dealers cut back on marketing budgets.</p>
<p>Employment, which accounted for 47 percent of total online classifieds revenue in 2007, dropped back to 45 percent in 2008. This was mainly due to the fourth quarter impact of the downturn on the recruitment industry which resulted in a significant weakening of the overall print and online employment advertising market.</p>
<p>After several very good years in terms of revenue growth and expansion, recruitment agencies are now experiencing a squeeze in revenues and market growth due to the reduction in employment vacancies across Australia. There is also a reduced need for employers to engage a recruiter due to the growing ease of finding candidates directly online. In 2009 and 2010, with the state of the economy uncertain and job security a concern, Frost &amp; Sullivan believes that online recruitment sites will need to focus on the delivery of quality, rather than quantity of services, at a low cost per service and cost per placement ratio.</p>
<p>Looking ahead, Frost &amp; Sullivan predicts a slower growth of the online classifieds advertising market for 2009 and 2010 compared to previously predicted levels. Real estate and automotive classifieds will continue to have the strongest growth through to 2012, with compound annual growth rates of 23 percent and 22 percent respectively. By 2012, automotive classifieds are expected to account for 20 percent of the overall online classifieds advertising market, up from 17 percent in 2008.</p>
<p>General and personal online classifieds advertising, which now accounts for just 10 percent of online classifieds, will continue to experience the slowest growth due to the relative maturity of these markets.</p>
<p>Phil Harpur, ANZ Senior Research Manager, Frost &amp; Sullivan, comments, “The long term trend of steady increases in revenue year-on-year will persist, particularly as spending continues to shift from print to online classifieds. Although online growth is slowing, it's a much more resilient sector than print or television. Advertising buyers are likely to gravitate towards online given the increasing pressure to maximise returns on their investments. In fact, the economic downturn could actually accelerate the migration of print to online in some industries.”</p>
<p>Australia Online Classifieds Advertising Market 2008-2012 forms part of Frost &amp; Sullivan’s Digital Media Advertising Program. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available.</p>
<p>Frost &amp; Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost &amp; Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents. To join our Growth Partnership, please visit</p>

Most Popular

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Join the newsletter!

Error: Please check your email address.

Latest Articles


PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?