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Analysts predict changes in online advertising for 2013

Frost & Sullivan has released its top seven predictions for digital media in 2013, authored by Phil Harpur, senior research manager at the analyst firm.

Frost & Sullivan’s top seven predictions for 2013:

1 – The impact of tablets on the digital media landscape will accelerate.

According to the report, smartphone penetration amongst the entire population is predicted to increase from 13% in 2012 to 29% in 2017. In addition to this, smartphone penetration is predicted to rise from 41% in 2012 to 65% in 2017.

2 – Online video advertising market will grow rapidly in Australia.

Frost & Sullivan is predicting the online video advertising market to grow by over 50% in 2013. It was worth $86 million in 2012, and the analyst house is forecasting it to be worth $442 million by 2016.

3 – Online video will take significant market share from the traditional broadcasting market.

The study is predicting that as smartphone penetration rises, so too will the acceptance of the mobile channel to watch online video.

4 – Social media will continue to gain popularity as an advertising medium.

According to the report, nearly 60% of Australian companies that advertise online used Facebook to some extent during 2012. Frost & Sullivan is predicting this to increase further in 2013 and 2014.

5 – Ad exchanges will become a crucial part of the online advertising ecosystem.

Purchasing inventory via ad exchanges (like Google AdWords, or Facebook Ads where you bid on online advertising) is expected to increase in 2013.

6 – integration of mobile advertising with other channels will increase.

The study shows that the mobile advertising market in Australia is forecast to reach $177 million by 2017. This will largely come about due to the integration of mobile advertising with other online and offline products in a single campaign.

7 – Mobile search will grow strongly.

Frost & Sullivan is predicting that Google and Bing will continue to invest significant resources into improving mobile search functionality. It’s also expected that queries for local products like restaurants and retail stores will become more common types of searches made via a mobile device.

Rival analyst firm IDC has released its predictions for the information and communication technology (ICT) sector in 2013.

The report is forecasting a transformation in how suppliers connect with Australian businesses, how workers connect with large enterprises, and the types of technologies being used.

The top ten predictions for 2013 from IDC are:

· Omni-channel retailing will drive growth in expansionary ICT spending from social local mobile applications
· Business analytics as a service will transform small-to-medium-sized businesses.
· Skill shortages will lead to growth in automation and virtualization as part of infrastructure services.
· On-premises computing will catch a second wind with converged systems.
· More than half of ICT purchasing decisions will involve a line of a business executive.
· The corporatization of the consumer.
· IT spending on hardware will not see a resurgence, but mobile devices will open up a window of growth opportunities and leads IT managers to reconsider perimeter-based security.
· Unified communications and collaboration extend to enterprise social networks.
· Machine-to-machine presents itself as a real growth opportunity for mobile operators.

“In 2013 ICT professionals must bridge two big forces. On the one hand, they are faced with a dangerously unbalanced European economy, a stagnant United States, and recent data pointing to the flattening of Chinese growth, which is negatively impacting Australian organizations,” says Matthew Oostveen, research director at IDC Australia.

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