Adboss Asserts Innovation is the Answer to Decline in Direct Advertising

Melbourne, Australia, November 27, 2011 --(PR.com)-- adboss.com.au

The growth in advertising campaigns bought directly from media companies is slowing, with new research showing a sustained decline in the direct advertiser market compared to the agency market.

The direct advertiser market accounts for approximately $5b of total advertising spend ($12b), a 41.1 per cent market share, which has steadily decreased from 45.7 percent over the past three years.

Independent research by adboss.com.au shows that since 2007, average annual spend in the direct advertiser market has decreased 0.9 per cent, while it has grown an average of 4.3 per cent for agency advertisers.

adboss.com.au joint managing director Jason Rose says that, "while the trend is due in part to economic uncertainty, and the global financial crisis, the decline in direct advertising is also reflective of deeper changes emerging across the advertising and SME landscape."

“Direct advertisers are generally smaller, private companies that are more sensitive to economic conditions. At the height of the global financial crisis direct advertisers cut their advertising back by 10 percentage points more than agency advertisers.

“This sensitivity is again evident at the moment with the current pressure on retailers, which represents some 30 per cent of the direct advertiser market,” Mr Rose said.

Mr Rose added, “At the same time, direct advertising spend has also been affected by social media and group-buying sites, which have gained prominence as accessible alternatives to traditional advertising.”

Fellow managing director Eden Rose said that for the direct advertising market to prosper both media companies and direct advertisers need to embrace innovation. He likened the opportunity to that experienced within the stock broking industry over the past decade.

“Since 1997, online share trading platforms have helped increase the number of people that actively own shares in Australia by 55 per cent,” he said.

“Given the size and importance of the direct advertiser market, it is really quite incredible that it hasn’t been the focus of much innovation. We think the market is well and truly ready for it.”

Jason Rose pointed out that adboss.com.au provided direct advertisers with a new way to access the advertising marketplace.

“We wanted to open the direct advertiser market to more of Australia’s 1.3 million small-to-medium-sized enterprises. These are businesses that are constantly looking for new local business marketing strategies to save themselves time and money,” he said.

“We are already seeing this happen with over 20 per cent of advertising briefs lodged through adboss.com.au being submitted outside of business hours. I think this demonstrates the flexibility of the online environment, and the extra time and resources it provides for businesses,” he said.

Adboss was founded by brothers Jason Rose and Eden Rose. Having both worked extensively in the media, marketing and advertising industries, they witnessed first-hand the challenges many direct advertisers face when buying media. They launched the patented adboss.com.au platform in 2011 to help direct advertisers buy their advertising more confidently and with greater convenience than ever before.

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