2012 Australia - E-Commerce, Marketing and Advertising

Publication Overview

This annual publication offers a wealth of information on the trends and developments taking place in the m-commerce and c-commerce sectors. The publication provides analyses of the issues surrounding the growth of e-commerce, including e-banking, e-payments and online advertising. Information on mobile commerce developments are also provided, including m-payments and m-banking, included statistics and forecasts for both the e-commerce and m-commerce sectors.

Subjects covered include:

  • Analyses of key e-commerce trends;
  • E-commerce trends and statistics;
  • Information on e-payment and e-banking sectors;
  • Analyses of key m-commerce trends;
  • Information on the key market players.

Researchers:- Paul Budde, Kylie Wansink, Stephen McNamara
Current publication date:- March 2012 (11th Edition)

Executive Summary

Online retailing revenue keeps climbing – when will the boom slow

A positive outcome from the financial crisis was that it resulted in global attention turning to new infrastructure developments; facilitating a unique opportunity to shift the broadband emphasis from a high-speed Internet service to a national infrastructure for the digital economy that will underpin a range of positive social and economic developments. These developments are also referred to as the Internet of Things, of which the digital economy will play a key role.

E-commerce is just one sector that will benefit from improvements in infrastructure and a trans-sector approach to governance; e-government, e-health, e-education, social media and e-science are also important elements of a digital economy. In this annual report we outline some of the key elements and considerations required to grow the digital economy further.

Based on the trans-sector model the NBN will become the shared infrastructure for a range of sectors including the digital economy. A new way of thinking will be required to guide us through the next stage of human evolution, and the trans-sector approach to the NBN will be critical infrastructure in this process. In this report we draw attention to the importance of looking across sectors to create synergy. We are convinced that convergence offers unprecedented opportunities if the NBN is linked to trans-sector innovation, creating a true digital economy.

E-Commerce and m-commerce have become very important areas of focus for the mobile operators, internet media players, financial institutions and payment processing firms alike. Governing bodies are also recognising the importance of this sector – in early 2012 the European Commission (EC) outlined 5 priority areas it wanted to improve in order to increase e-commerce growth and its contribution to the GDP.

The e-commerce sector has become very competitive and different types of players are vying for position. A number of key developments have occurred, particularly in the mobile digital wallet space and with websites which offer “deals of the day”. New social media concepts such as Facebook Credits and Pinterest may also offer future e-commerce opportunities.

Into 2012 the main forms of online payments in Australia are still the use of credit cards and direct debit cards. Meanwhile PayPal has established itself as the most advanced e-payment system outside the banks with its mobile online payments increasing by more than 400% year-on-year in 2011.

Spending on online advertising expenditure in Australia continues to reach new highs. The amount spent in the online advertisements segment in Australia is continuing to grow as does the expenditure by the businesses and consumers in this marketplace. Driving the spending is often mobile devices where purchases can be made on a whim or as the need arises and by comparison shopping using the mobile device

By end-2011 online advertising had increased overall by around 17% year-on-year in 2011. The increase in online advertising may be in anticipation of an increased economic environment coming into 2012 as Australian businesses continue to increase the amount of online sales.

Mobile banking and e-banking is currently the big consumer ‘bank’ where most electronic transactions are done. But within a year or two, the open Android platform together with an open API type access platform there is a possibility m-commerce transactions will see the takeup of mobile money transfers slowly moving away from the big banks.

M-payments, however, could still be a lucrative market for the telcos, since they have the opportunity to bill customers via their mobile billing system and have the large customer databases. But telcos are combining to create international money transfer hubs that are being increasingly by mobile phone operators and will also challenge the banks.

In this annual publication we provide an overview of the Australian e-payment market with some references to the overseas markets. Also provided is industry analysis and information on a number of the bigger players in the market.

Key performance indicators of the e-commerce, marketing and advertising markets – 2011

Category

2011

Online sales (million)

$1,050

Online sales growth

30%

Online shoppers (million)

9.5

Online advertising revenue (million)

$2,400

Online advertising growth

17%

Mobile advertising revenue (million)

$37

(Source: BuddeComm, based on various industry figures and estimates)

Market highlights:

  • Spending on voucher type deals increasing as daily deal type sites continue to expand.
  • In 2011 around 1,000 transactions per hour took place using PayPal.
  • Recent industry insights and information on the e-commerce and m-commerce sectors are provided.
  • PayPal has over 4 million active users and around 40,000 merchant customers in Australia.
  • In 2011 the number of electronic payment transactions is estimated to have exceeded 4 billion.

Data in this report is the latest available at the time of preparation and may not include the current year.

Table of Contents

  • 1. The Dynamic Digital Economy
    • 1.1 Infrastructure essential for the digital economy
      • 1.1.1 The Internet of Things (IoT)
    • 1.2 Can we fast-track the digital economy?
      • 1.2.1 The OECD on the Internet Economy
      • 1.2.2 The relationship between local content, internet development and access prices
    • 1.3 Key sectors for the digital economy
      • 1.3.1 Background information
      • 1.3.2 Smart grids and the environment
      • 1.3.3 E-commerce
      • 1.3.4 E-government
      • 1.3.5 E-health
      • 1.3.6 E-education
      • 1.3.7 Social media
    • 1.4 Key requirements of the digital economy
      • 1.4.1 Broadband
      • 1.4.2 Trans-sector approaches
      • 1.4.3 Open access
      • 1.4.4 Internet neutrality
    • 1.5 Conclusion: digital economy services
  • 2. E-Commerce and M-Commerce Insights
    • 2.1 Market summary
      • 2.1.1 Global e-commerce market
      • 2.1.2 Global m-commerce market
      • 2.1.3 Security still a key issue
    • 2.2 Market insights
      • 2.2.1 Underlying trends
      • 2.2.2 E-payments
      • 2.2.3 Key m-commerce sectors
      • 2.2.4 Internet banking (E-banking) and Mobile banking (M-banking)
      • 2.2.5 Evolving e-commerce business models
      • 2.2.6 Internet based content still relies on advertising
      • 2.2.7 Cloud computing and e-commerce
    • 2.3 Case studies
      • 2.3.1 E-commerce in the USA
      • 2.3.2 M-commerce in the USA
      • 2.3.3 E-commerce in China
      • 2.3.4 M-commerce in China
      • 2.3.5 FeliCa in Japan
  • 3. Online Retailing Trends and Statistics
    • 3.1 The key drivers of growth
    • 3.2 Market analysis
      • 3.2.1 Online retail activities survey
      • 3.2.2 Internet e-tailing rose in 2011
      • 3.2.3 Surveys show online growth into 2012
      • 3.2.4 Spending online to grow as tablet and smartphones uptake increases
    • 3.3 Trends and Developments
      • 3.3.1 Suppliers boycotting online sales
      • 3.3.2 Postal items increase inbound while dollars go outbound
    • 3.4 Key players
      • 3.4.1 The Kogan store
      • 3.4.2 Woolworths
      • 3.4.3 carsales.com.au
      • 3.4.4 Graysonline
    • 3.5 Online auctions
      • 3.5.1 eBay
      • 3.5.2 Quicksales
      • 3.5.3 Gumtree
    • 3.6 The Coupon Market
      • 3.6.1 Overview
      • 3.6.2 Statistics
  • 4. Social Enterprise Business Models
    • 4.1 Introduction
    • 4.2 Building lifelong customer relationships
      • 4.2.1 Trans-sector platform for new business models
      • 4.2.2 Beware of bogus claims
      • 4.2.3 Traditionally-oriented economic growth is approaching its limit
      • 4.2.4 How to develop customer-focused business models
  • 5. National Broadband Network – Digital Economy
    • 5.1 The issue is the digital economy, not broadband - analysis
    • 5.2 National Digital Economy Strategy
      • 5.2.1 Introduction
      • 5.2.2 Other Specific initiatives
      • 5.2.3 The Digital Hubs and Digital Enterprise programs
      • 5.2.4 Local e-government initiative
      • 5.2.5 Education and skills development
      • 5.2.6 The NBN-Enabled Education and Skills Services program
      • 5.2.7 Tuition for new migrants using the NBN
      • 5.2.8 e- health services
      • 5.2.9 Teleworking
      • 5.2.10 NBN Regional Legal Assistance Program
    • 5.3 NBN Art grants
    • 5.4 Business participation on the NBN
      • 5.4.1 Broadband: A key digital driver
      • 5.4.2 Broadband boost
      • 5.4.3 Network driver
      • 5.4.4 Utility features
    • 5.5 Analyses 2011-2012
      • 5.5.1 policy two years in the making
      • 5.5.2 First release site – trans-sector test sites
      • 5.5.3 Co-development of fibre and the digital economy
    • 5.6 More education required to sell the NBN to business users
    • 5.7 Digital Inclusion
  • 6. Advertising, Statistics and Revenues
    • 6.1 Digital economy – business internet income
    • 6.2 The online advertising market
      • 6.2.1 Interactive Advertising Bureau (IAB) survey of online advertising expenditure – 2011
      • 6.2.2 Revenue trends from 2011 into 2014
    • 6.3 Mobile internet advertising
      • 6.3.1 Background
      • 6.3.2 Insights into mobile advertising trends
      • 6.3.3 Mobile advertising to mature
    • 6.4 Generation Y is driving the online media push
    • 6.5 Revenue statistics
      • 6.5.1 Online advertising revenue forecasts
      • 6.5.2 Online advertising revenue statistics
    • 6.6 Online classified advertising
      • 6.6.1 Overview of market spending – 2010
    • 6.7 Online video advertising market
      • 6.7.1 Market overview
      • 6.7.2 Video gaming industry downsizes
    • 6.8 Website usage statistics
      • 6.8.1 Top 10 Australian websites – 2009 - 2011
    • 6.9 Market surveys
      • 6.9.1 Online shopper survey but still buying offline
      • 6.9.2 Children and the usage of social networks
      • 6.9.3 Ericsson/IDC – rapid growth for TV/video sector
      • 6.9.4 Online general advertising survey
      • 6.9.5 PricewaterhouseCoopers (PwC) Entertainment & Media Outlook report to 2012
      • 6.9.6 Search advertising revenues
  • 7. E-Payment
    • 7.1 E-payment – developments
      • 7.1.1 Payment types shifting
      • 7.1.2 Review of gift card services
      • 7.1.3 E-payments code
    • 7.2 E-payment – analysis
      • 7.2.1 Twenty-five years in the making
      • 7.2.2 Moving to mobile payments
      • 7.2.3 Telcos under pressure
      • 7.2.4 Banks will have to come to the party
    • 7.3 Service providers
      • 7.3.1 Electronic bill payments (BPAY)
      • 7.3.2 Other providers
      • 7.3.3 PayPal
      • 7.3.4 POLi
    • 7.4 Micropayment developments
      • 7.4.1 URL billing
      • 7.4.2 Money transfers through calling cards and mobile phones
    • 7.5 Gift and loyalty cards
      • 7.5.1 Overview
      • 7.5.2 Cardlimbo
  • 8. M-Commerce – Developments and Projects
    • 8.1 Overview and analysis of m-commerce in Australia
      • 8.1.1 Introduction
      • 8.1.2 Only small usage takeup
      • 8.1.3 Impacting issues
      • 8.1.4 Testing the models
      • 8.1.5 Closed systems
      • 8.1.6 Research indicates consumers wary of telcos for payment options
      • 8.1.7 Apps need m-payments
    • 8.2 M-payment projects and services
      • 8.2.1 mHITs
      • 8.2.2 Near Field Communications (NFC) overview
      • 8.2.3 Contactless payments
    • 8.3 Mobile banking (m-banking)
      • 8.3.1 M-banking overview
      • 8.3.2 Commonwealth Bank of Australia (CBA)
      • 8.3.3 Australia and New Zealand Bank (ANZ)
      • 8.3.4 NAB
      • 8.3.5 Westpac
      • 8.3.6 Public transport
    • 8.4 Other m-commerce developments
      • 8.4.1 Background information
      • 8.4.2 e-Insurance
      • 8.4.3 SMS m-commerce
    • 8.5 Premium rate SMS (PSMS) portals and applications (apps)
  • 9. E-Security and E-Governance Insights
    • 9.1 E-security and e-governance
      • 9.1.1 Infrastructure issues
      • 9.1.2 The governance of the internet
      • 9.1.3 Cybercrime
      • 9.1.4 We cannot start from scratch
      • 9.1.5 Collaboration is the only option
      • 9.1.6 Child protection a priority
      • 9.1.7 Call for action
    • 9.2 E-security and key e-services
      • 9.2.1 E-health security
      • 9.2.2 E-commerce security
    • 9.3 E-security spending
  • 10. Glossary of Abbreviations
  • Table 1 – Worldwide connected devices
  • Table 2 – Worldwide telecom statistics at a glance – 2012
  • Table 3 – Global e-commerce revenue – 2009 - 2013
  • Table 4 – Visitors to top fifteen web properties worldwide – June 2010; March 2011
  • Table 5 – Worldwide smart phone mobile device sales by quarter – 2009 – Q1 2012
  • Table 6 – Worldwide advertising spending- all mediums – 2008 - 2012
  • Table 7 – Worldwide online advertising spending – 2007 - 2012
  • Table 8 – Fastest growing e-commerce sectors in the USA – 2008 - 2010
  • Table 9 – Online retail sales and annual change in the USA – 2003 - 2010
  • Table 10 – Mobile banking users in the USA – 2007 - 2010
  • Table 11 – Breakdown of e-commerce users in China – 2009
  • Table 12 – Estimated value of B2C e-commerce market in China – 2005 - 2011
  • Table 13 – Estimated value of C2C e-commerce market in China – 2005 - 2011
  • Table 14 – Number and $ value of online purchases by Australians – 2009 - 2011
  • Table 15 – Pricing difference of selected items between in-store and online – 2011
  • Table 16 – Mobile transactions on eBay by phone type – 2010
  • Table 17 – Mobile transactions on eBay – 2010
  • Table 18 – eBay members in Australia – 1999; 2003 - 2004; 2006; 2009 - 2011
  • Table 19 – Estimated revenue from coupon websites – 2010 - 2014
  • Table 20 - Round 1 funding recipients Digital Hubs and Digital Enterprise
  • Table 21 - Eligible round 2 communities Digital Hubs and Digital Enterprise
  • Table 22 - Digital local government program projects - round 1
  • Table 23 - What does a better broadband service look like?
  • Table 24 – Will better broadband increase your digital economy participation?
  • Table 25 - What do you value in a broadband service?
  • Table 26 – Business internet income and annual change – 2007 - 2012
  • Table 27 – Estimated mobile device advertising in Australia – 2008 - 2011; 2015
  • Table 28 – Market shares of key online advertising markets – 2008 - 2012
  • Table 29 – Online advertising expenditure and forecasts – 2000 - 2015
  • Table 30 – Expenditure in the email and video advertising sector online – 2009 - 2011
  • Table 31 – Nielsen Online top Australian websites by unique audience – 2009 - 2010
  • Table 32 – Top ten Australian websites by unique audience – 2009 - 2011
  • Table 33 – Social networking in the workplace – 2009 - 2010
  • Table 34 – Australian entertainment and media market – revenue by industry – 2007 - 2012
  • Table 35 – Australian entertainment and media market – annual growth by industry – 2008 - 2012
  • Table 36 – Australian consumer/end-user spending – 2007 - 2012
  • Table 37 – Australian consumer/end-user spending – annual growth by industry – 2008 - 2012
  • Table 38 – Australian advertising spending – 2007 - 2012
  • Table 39 – Australian advertising spending – annual growth by industry – 2008 - 2012
  • Table 40 – Australian entertainment and media market – revenue by industry – 2006 - 2008; 2011
  • Table 41 – Australian entertainment and media market – annual growth by industry – 2007 - 2008; 2011
  • Table 42 – Australian entertainment and media market – consumer/end user spending by industry – 2006 - 2008; 2011
  • Table 43 – Australian entertainment and media market – consumer/end user annual growth by industry – 2007 - 2008; 2011
  • Table 44 – Australian entertainment and media market – advertising spending by industry – 2006 -2008; 2011
  • Table 45 – Australian entertainment and media market – advertising annual growth by industry – 2007 - 2008; 2011
  • Table 46 – Share of consumer spending by industry sector – 2006; 2011
  • Table 47 – Share of advertising revenue by industry sector – 2006; 2011
  • Chart 1 –Worldwide market share of M2M connections – 2011; 2020
  • Chart 2 – Overview of the growth of eBay members in Australia – 1999; 2003 - 2004; 2006; 2009 - 2011
  • Chart 3 – Overview of estimated coupon website revenue – 2010 - 2014
  • Chart 4 – Overview of business internet income and annual change – 2007 - 2012
  • Chart 5 – Overview of mobile online advertising revenue – 2008 - 2011; 2015
  • Chart 6 – Overview of online advertising expenditure and forecasts – 2001 - 2015
  • Chart 7 – Online advertising expenditure in the email and video sector – 2009 - 2011
  • Chart 8 – Use of price comparison sites – 2010
  • Chart 9 – Use of social networking sites by demographic – 2008 - 2010
  • Chart 10 – Social networking trends among children – 2008 - 2010
  • Chart 11 – Paid search advertising revenue – 2005 - 2006; 2010
  • Exhibit 1 – Digital economy – key developments
  • Exhibit 2 – Faster broadband speeds offer more than just fast internet
  • Exhibit 3 – Explanation – optical fibre
  • Exhibit 4 – Selected examples of countries with planned ICT infrastructure investment
  • Exhibit 5 – Digital economy – key developments
  • Exhibit 6 – Popular online activities
  • Exhibit 7 – European Commission e-commerce five priorities - 2012
  • Exhibit 8 – Mobile devices tipping point
  • Exhibit 9 – Overview of PayPal
  • Exhibit 10 –Mobile Apps examples across various sectors
  • Exhibit 11 – M-Commerce – key developments
  • Exhibit 12 – M-PESA
  • Exhibit 13 – Money transfer services
  • Exhibit 14 – Groupon
  • Exhibit 15 – Definition: Cloud computing
  • Exhibit 16 – Subway introduces SMS ordering
  • Exhibit 17 – China’s dominant e-commerce site
  • Exhibit 18 – Online users and other media usage
  • Exhibit 19 – Example items sold on average in Australia on eBay
  • Exhibit 20 – Interesting items from online auctions
  • Exhibit 21 – The new definition of social enterprise
  • Exhibit 22 – Foursquare
  • Exhibit 23 – Peter Drucker on customers
  • Exhibit 24 – Key applications of a digital economy
  • Exhibit 25 – BPAY – company overview 1997; 2002; 2010 - 2011
  • Exhibit 26 – Overview of Project M@MBO (Me at my bank online) – 2007 - 2011
  • Exhibit 27 – Overview of Google Checkout
  • Exhibit 28 – PayPal – other developments
  • Exhibit 29 – Overview of Q-Jumper and Easy Canteen by mHITs
  • Exhibit 30 – Net neutrality must remain

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Technologies

Broadband Fixed
Digital Economy
Digital Media
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Number of pages 132

Status Archived

Last updated 21 Mar 2012
Update History

Analyst: Paul Budde

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