Online advertising market worth $2.66bn in 2011

Kirsty Simpson February 14, 2012

AUSTRALIA'S online advertising market continued to shrug off a tough economic environment, with the country's websites recording 17 per cent growth, to $2.66 billion, last year.

The online advertising market expanded to $716 million in the last three months of last year, up 14 per cent compared with the previous corresponding period, according to the Internet Advertising Bureau of Australia.

Chief executive Paul Fisher said he expected online advertising to top $3 billion this year and snare more than 20 per cent of the total market.

Search engines and online directories attracted the lion's share of the growth - they now account for 53.7 per cent of spending, while general display advertising attracted 23.8 per cent of spending and classifieds took the remaining 23.1 per cent.

Mr Fisher said there was room for growth in ''fast-moving consumer goods'', which attracted $100 million in online advertising.