Facebook and other global digital media companies will corner 33 percent of the Australian advertising market by 2017, leaving domestic companies to compete over a smaller available advertising pool, a new report finds.
Morgan Stanley has warned that investors ”may be underestimating the implications of the leakage of ad spending out of Australia”, saying the shift is escalating as ”ad spend moves to online and to mobile”.
Basing its new figures on analysis suggesting that if Facebook achieved the same market share in Australia that it is forecast to earn in the US, it would attract AUD400 million (USD411.3m) to AUD600m in Australian advertising by 2017, double Morgan Stanley’s original expectations.
(Source: The Sydney Morning Herald Online )