2013 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 (12th Edition)

 

Executive Summary

The mobile and digital economy

Digital economy – e-commerce insights

In 2013 it is heartening to see that people are getting the message that broadband means more than just fast internet access. Increasingly key decision-makers in business and government are reaching an understanding of the transformation that is underway in the economy. One positive outcome of the financial crisis was that global attention turned to new infrastructure developments and this created 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 and M2M, in which the digital economy will play a key role.

The digital economy affects everybody, including existing players such as telcos, banks, media and retail. They will need to adapt to the new environment, while new players will enter these markets from different angles.

This indicates a strong acknowledgement of business benefit, including productivity gains and positive growth. It highlights an almost unanimous view that active digital economy participation is important to future business success, despite a diversity of adoption, planning and sophistication across the business community.

While popular sites like Amazon and eBay are well-known, social media models such as Facebook Credits and Pinterest may offer future e-commerce opportunities. Governing bodies are also recognising the importance of this sector – the European Commission outlined five priority areas it wanted to improve in order to increase e-commerce growth and its contribution to the GDP.

This report offers industry insights and information on the e-commerce sectors. It includes selected information on the leading trends in this sector and provides examples and statistics, where available. It also surveys how well businesses are prepared for the digital economy; where they participate; their strengths and weaknesses; and the first interesting commercial starting points. It gives statistics in tabular and chart formats. The report also contains detailed statistics from e-business activity usage surveys.

The mobile and online economy

After decades of procrastination the era of m-payments has finally begun to take off, with three of the four banks now offering m-payment applications. Further expansions are expected in other sectors of m-banking, as smartphones and tablets are quickly becoming customers’ preferred way to interact with their banks. By 2015 it is expected that m-banking will overtake the online banking in the number of transactions carried out electronically.

The arrival of the iPhone proved that the mobile operators’ restrictive portal market could be bypassed and this produced an explosion in new mobile applications – to such an extent that the value of this market overtook the mobile portal market within two years. It is now the dominant m-commerce platform. Within the next year it is possible that the open Android platform, together with an open API type access, will support more m-commerce and drive the development and uptake of m-payment facilities further.

Parallel to the rollout of the national broadband network (NBN) the government also has its National Digital Economy Strategy.

Based on the trans-sector model the NBN will become the shared infrastructure for a range of sectors such as e-health, e-education, smart grids, e-government, digital economy, digital media, etc. The first release sites are playing a key role in testing this concept, while at the same time allowing organisations to obtain first-hand experience in building the digital economy.

We are convinced that convergence offers unprecedented opportunities if the NBN is linked to trans-sector innovation, creating a true digital economy. Such a parallel strategy can break through the many silo-based structures that have been created over the last 50 years. And it can break through inflexible vertically-integrated structures that increase costs and impede competition and innovation.

Such an approach will most likely result in economic and social benefits worth many billions of dollars and, as we are already seeing, it will create significant new business opportunities for Australian companies. In healthcare alone there is talk of savings worth more than $10 billion, and $2 billion in smart grid.

Across Australia more and more users are now shopping online from the comfort of home, while at work, and even impulse buying using mobile devices. While online sales have been growing at around 20%-30% annually, the overall market share is still only around 10% of the overall market. Many users cite availability, convenience, pricing and delivery options as some of reasons for purchasing online.

While the number of users purchasing online has increased by more than 40% over the last couple of years so, too, has the amount of businesses that operate a retail web presence. Low start-up costs and minimal barriers to entry have seen many enterprises, both Australian- and overseas-based, operating successfully in the direct sales to consumers market.

Online advertising expenditure in Australia continues to reach new heights, with year-on-year growth between 15% and 20%. The increased use of video advertising and also video viewing continues to grow as the increase in broadband availability has seen advertisers continuing to experiment with new formats. We are seeing an ongoing increased use of targeted advertising delivered over the internet, as millions of users watch millions of online videos monthly.

Table of Contents

  • 1. The Digital Economy
    • 1.1 E-Commerce
      • 1.1.1 Market summary
      • 1.1.2 Market insights
      • 1.1.3 Internet banking (E-banking)
      • 1.1.4 Evolving e-commerce trends
    • 1.2 The Essential Internet Economy
      • 1.2.1 The issue is the digital economy, not broadband
      • 1.2.2 Infrastructure essential for the digital economy
      • 1.2.3 Can we fast-track the digital economy?
      • 1.2.4 International discussion
      • 1.2.5 The emergence of mega-communities
      • 1.2.6 Key sectors for the digital economy
      • 1.2.7 Key requirements of the digital economy
      • 1.2.8 Conclusion: digital economy services
    • 1.3 Business Market – Trends and Statistics
      • 1.3.1 Digital economy – business internet income
      • 1.3.2 Digital marketing spend
      • 1.3.3 Market statistics and surveys
    • 1.4 M-Banking and M-Payments
      • 1.4.1 Market Overview, analysis and statistics
      • 1.4.2 Projects and Services
      • 1.4.3 M-Commerce Developments
      • 1.4.4 E-payment
      • 1.4.5 Premium rate SMS (PSMS) portals and applications (apps)
    • 1.5 National Broadband network and the Digital Economy
      • 1.5.1 Strategic Analysis
      • 1.5.2 National Digital Economy Strategy
      • 1.5.3 NBN Art grants
      • 1.5.4 Business participation on the NBN
      • 1.5.5 Sense-T
      • 1.5.6 Traffic lights and alarm system go M2M over the NBN
      • 1.5.7 More education required to sell the NBN to business users
      • 1.5.8 Digital Inclusion
  • 2. Online Retailing – Trends and Statistics
    • 2.1 A snapshot of the retail industry
    • 2.2 ICT spend in retail sector
    • 2.3 The key drivers of growth
    • 2.4 Market analysis
      • 2.4.1 Australia still waiting for in-store e-shopping
      • 2.4.2 Online retail activities
      • 2.4.3 Australian online sales rises 27%
      • 2.4.4 Internet e-tailing to continue rises towards 2015
      • 2.4.5 Spending online to grow as tablet and smartphones uptake increases
      • 2.4.6 Online shopping passes the tipping point
    • 2.5 Key players
      • 2.5.1 The Kogan store
      • 2.5.2 Woolworths
      • 2.5.3 carsales.com.au
      • 2.5.4 Graysonline
      • 2.5.5 Surfstitch
    • 2.6 Online auctions
      • 2.6.1 eBay
      • 2.6.2 Quicksales
      • 2.6.3 Gumtree
    • 2.7 The Coupon Market
      • 2.7.1 Overview
      • 2.7.2 Statistics
      • 2.7.3 Major players
  • 3. Online Advertising
    • 3.1 The online advertising market
      • 3.1.1 Interactive Advertising Bureau (IAB) survey of online advertising expenditure – 2012
      • 3.1.2 Revenue trends towards 2014
      • 3.1.3 Advertising and revenue generation
    • 3.2 Mobile internet advertising
      • 3.2.1 Background
      • 3.2.2 Mobile advertising to mature
      • 3.2.3 Mobile devices increase growth in online video advertising
      • 3.2.4 Generation Y is driving the online media push
    • 3.3 Revenue statistics
      • 3.3.1 Online advertising revenue forecasts
      • 3.3.2 Online advertising revenue statistics
    • 3.4 Online video advertising market
      • 3.4.1 Market overview
    • 3.5 Market surveys
      • 3.5.1 Social media sites linked to advertising and buying patterns
      • 3.5.2 Businesseses advertising to get traffic
      • 3.5.3 Children, internet and social networks
      • 3.5.4 PricewaterhouseCoopers (PwC) Entertainment & Media Outlook report to 2016
      • 3.5.5 Search advertising revenues
    • 3.6 Different (digital) working arrangements
    • 3.7 Website usage statistics
      • 3.7.1 Top 10 Australian websites – 2010 - 2013
  • 4. Book Publishing in the New Era
    • 4.1 Introduction
    • 4.2 Transforming the book industry
      • 4.2.1 Digital e-readers/e-books
    • 4.3 Customer service is king
    • 4.4 Promoting national culture
    • 4.5 Industry protectionism will fail
    • 4.6 More power to the author
    • 4.7 E-publishers are very different beasts
      • 4.7.1 Educational books
    • 4.8 Global opportunities
    • 4.9 Conclusion
      • 4.9.1 Industry needs a digital transformation
  • 5. E-Security
    • 5.1 E-security and e-governance
      • 5.1.1 Infrastructure issues
      • 5.1.2 The governance of the internet
      • 5.1.3 We cannot start from scratch
      • 5.1.4 Collaboration is the only option
      • 5.1.5 Call for action
    • 5.2 Cybercrime
      • 5.2.1 Child protection a priority
      • 5.2.2 E-health security
      • 5.2.3 E-commerce security
    • 5.3 Recent security developments
      • 5.3.1 Internet companies in China show interest
      • 5.3.2 Security an issue for social media
      • 5.3.3 E-security spending
  • 6. Social Enterprise Business Models and Customer Relationships
    • 6.1 Introduction
    • 6.2 Building lifelong customer relationships
      • 6.2.1 Trans-sector platform for new business models
      • 6.2.2 Beware of bogus claims
      • 6.2.3 Traditionally-oriented economic growth is approaching its limit
      • 6.2.4 How to develop customer-focused business models
    • 6.3 Lack of good customer expectation in telecoms market
    • 6.4 The retail market needs to lift its game
      • 6.4.1 Under-investment in customer experience
      • 6.4.2 Very little service differentiation between players
      • 6.4.3 New sectors are entering the retail market
      • 6.4.4 New approach needed, not a fix of broken systems
      • 6.4.5 Cost transparency: the single most important issue in the telco market
    • 6.5 Solution: high quality data and analytics
      • 6.5.1 Data silos
    • 6.6 Contextual intelligence
      • 6.6.1 Benefits for telcos and ISPs
      • 6.6.2 Social Network Analytics
    • 6.7 Data analytic application examples
      • 6.7.1 Subscriber Data Management
    • 6.8 Business understands need for real-time processing
    • Table 1 – Global e-commerce spending – 2011 - 2013
    • Table 2 – Visitors to top fifteen web properties worldwide – June 2010; March 2011
    • Table 3 – Global e-commerce spending – 2011 - 2013
    • Table 4 – Global investment in e-government – 2010 - 2016
    • Table 5 – Business internet income and annual change – 2002; 2007 - 2012
    • Table 6 – Spend above 25% of marketing budget in Australia versus selected Asian countries – 2012
    • Table 7 – Digital marketing adoption in Australia versus selected Asian countries – 2012
    • Table 8 – Methods of measuring digital media success in Australia – 2012
    • Table 9 – Top 5 uses of the internet by businesses – 2008 - 2012
    • Table 10 – The top 5 categories purchased by businesses using the internet – 2009 - 2012
    • Table 11 – Snapshot of business indicator returns by selling on the internet – 2009 - 2012
    • Table 12 – Selling over the internet by industry sector – 2012
    • Table 13 – Businesses with and the effectiveness of websites – 2009 - 2012
    • Table 14 – Top 5 uses of mobile internet – 2009 - 2012
    • Table 15 – Social networking use by businesses – 2010 - 2012
    • Table 16 – Popularity of contactless payments using smartphones – 2011-2012
    • Table 17 – What does a better broadband service look like?
    • Table 18 – Will better broadband increase your digital economy participation?
    • Table 19 – What do you value in a broadband service?
    • Table 20 – Estimated retail trade revenue online and traditional – by industry – 2012
    • Table 21 – Overview of online shopping activities by Australians – 2012
    • Table 22 – eBay members in Australia – 1999; 2003 - 2004; 2006; 2009 - 2012
    • Table 23 – Estimated mobile device advertising in Australia – 2008 - 2015
    • Table 24 – Market shares of key online advertising markets – 2008 - 2012
    • Table 25 – Online advertising expenditure and forecasts – 2000 - 2015
    • Table 26 – Expenditure in the email and video advertising sector online – 2009 - 2012
    • Table 27 – Use of social networking sites by age group – 2008 - 2012
    • Table 28 – Use of social networking sites by demographic – 2008 - 2012
    • Table 29 – Australian entertainment and media market – revenue by industry – 2007 - 2012
    • Table 30 – Australian entertainment and media market – annual growth by industry – 2008 - 2012
    • Table 31 – Australian entertainment and media market –by industry share – 2007 - 2011
    • Table 32 – Australian entertainment and media market –by industry share – 2012 - 2016
    • Table 33 – Estimated online paid search advertising revenue – 2005 - 2006; 2010 - 2013
    • Table 34 – Top ten websites by unique Australian audiences – 2010 - 2013
    • Table 35 – Growth of e-reader sales – 2009 - 2013
    • Table 36 – Worldwide IT security spending – 2011; 2012; 2016
    • Chart 1 – Overview of business internet income and annual change – 2007 - 2012
    • Chart 2 – Overview of the top five uses of the internet by businesses – 2008 - 2012
    • Chart 3 – Overview of the top 5 categories purchased by businesses using the internet – 2009 - 2012
    • Chart 4 – Overview of business indicator returns by selling on the internet – 2008 - 2012
    • Chart 5 – Overview of percentages of businesses online – 2008 - 2012
    • Chart 6 – Overview of the trends of the top five uses of mobile internet – 2009 - 2012
    • Chart 7 – Overview of online shopping activities by Australians – 2012
    • Chart 8 – Overview of eBay members in Australia – 1999; 2003 - 2004; 2006; 2009 - 2012
    • Chart 9 – Overview of online advertising revenue on mobile devices – 2008 - 2015
    • Chart 10 – Overview of online advertising expenditure and forecasts – 2001 - 2015
    • Chart 11 – Overview of online advertising expenditure in the email and video sector – 2009 - 2012
    • Chart 12 – Overview of social networking use by age group – 2008 - 2012
    • Chart 13 – Overview of paid search advertising revenue – 2005 - 2006; 2010 - 2013
    • Exhibit 1 – Digital economy – key developments
    • Exhibit 2 – Popular online activities
    • Exhibit 3 – European Commission e-commerce five priorities - 2012
    • Exhibit 4 – Online retail market - regional overview
    • Exhibit 5 – Examples of popular online retail websites around the world
    • Exhibit 6 – Security still a key issue
    • Exhibit 7 – Overview of PayPal
    • Exhibit 8 – Groupon
    • Exhibit 9 – Vancouver mall customers shop via Facebook
    • Exhibit 10 – Definition: Cloud computing
    • Exhibit 11 – Digital economy – key developments
    • Exhibit 12 – Popular online activities
    • Exhibit 13 – Digital economy – key developments
    • Exhibit 14 – European Commission e-commerce five priorities - 2012
    • Exhibit 15 – Examples of common web based e-government applications
    • Exhibit 16 – Snapshot of health care spending around the world
    • Exhibit 17 – How appealing are contactless payments – 2011-2012
    • Exhibit 18 – Overview of Q-Jumper and Easy Canteen by mHITs
    • Exhibit 19 – Key applications of a digital economy
    • Exhibit 20 – Round 1 funding recipients Digital Hubs and Digital Enterprise
    • Exhibit 21 – Eligible round 2 communities Digital Hubs and Digital Enterprise
    • Exhibit 4 – Eligible round 3 communities Digital Hubs and Digital Enterprise
    • Exhibit 5 – Digital local government program projects – round 1
    • Exhibit 6 - Local councils added to the project in May 2012
    • Exhibit 7 - Local councils added to the project in July 2012
    • Exhibit 22 – Online users and other media usage
    • Exhibit 23 – Example items sold on average in Australia on eBay
    • Exhibit 24 – What’s selling on eBay mobile in Australia
    • Exhibit 25 – Interesting items from online auctions
    • Exhibit 26 – A brief insight on the group buying coupon websites
    • Exhibit 27 – Statistical snapshot of e-books
    • Exhibit 28 - All European books online for the price of 600km of roads
    • Exhibit 29 – The new definition of social enterprise
    • Exhibit 30 – Foursquare
    • Exhibit 31 – Peter Drucker on customers
    • Exhibit 32 – Bundling services in Europe
    • Exhibit 33 – Real-time processing
    • Exhibit 34 - Key characteristics of contextual intelligence in customer service

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Technologies

Broadband Fixed
Digital Economy
Digital Media
Mobile & Wireless Broadband and Media

Number of pages 141

Status Archived

Last updated 8 Apr 2013
Update History

Analyst: Paul Budde

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