Posted February 09, 2019 16:01:51There’s a new threat to our digital future and it’s coming from Australia’s tech companies.
The Digital Economy Agency (DEA) has warned that it expects the cost of online advertising to soar in coming years.
The agency’s annual report, published today, shows that Australian companies spend $1.2 billion annually on digital advertising in 2018, with the average spend of $0.7 per customer per month.
While this is still a relatively small amount, DEA has warned of a looming digital economy crisis.
The digital economy is the online ecosystem where people and businesses interact, store, and share information.
DEA’s report suggests that the cost per user has already increased to $5.8 per user in 2018.
The total value of digital advertising has increased by 25 per cent in the past five years, the agency said.
This means that the digital economy will take a substantial hit as the digital advertising industry continues to grow.
This isn’t just a problem for Australia’s online advertising industry, it’s a problem around the world.
The report also highlights that digital advertising is increasingly becoming an investment opportunity.
While digital advertising still accounts for just under 10 per cent of the Australian economy, the total value is now greater than US$1 trillion.
This suggests that digital ads are likely to continue to be a significant part of the digital ad ecosystem in coming decades.
DEAs report comes on the back of a similar report from the US Government Accountability Office (GAO), which estimated that digital marketing alone accounted for roughly half of all US GDP growth between 2010 and 2020.
In 2018, the US government spent $3.2 trillion on digital ads.
While the total amount spent on advertising was higher than in the UK ($2.5 trillion), Australia is the only country that spent more on advertising than the US.
The Australian Government has said that it is “actively considering” ways to rein in the cost burden on businesses, but it is unclear if any such measures are on the cards.