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Australia - E-Commerce, Marketing and Advertising

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.

Executive Summary

The Digital Economy is driving sector and industry transformations

Key Insights

Based on the growth of internet and mobile users alone, it is hardly any wonder that e-commerce and m-commerce are thriving. Despite the economic downturn, online spending is proving resilient and even buoyant in most markets. New communication and software developments are making it increasingly possible for retailers to offer a seamless shopping experience using all the available shopping channels - mobile devices, computers, bricks-and-mortar, television, radio, direct mail, catalogues, and so on. In our existing climate of digital interaction, the concept of a ‘Sharing Economy' is gaining momentum. New developments are following in the footsteps of those entrepreneurs who created sites where people share their houses and car spaces. We are now increasingly seeing sites aimed at people who need people for odd jobs, at short notice. Uber was perhaps the first on the scene here. It is still operating in a narrow market (taxies), but other companies are entering the much broader job market, by using e-commerce, offering business opportunities to increasing larger groups of people.

Mobile shopping is one of the hottest topics, and the m-commerce market is growing at a staggering rate. While this boom will of course taper off eventually, m-commerce will remain one of the leading growth areas for some years, driven by the younger generation and its mobile-centric lifestyle. With consumers relying more and more on their smartphones when shopping online, m-commerce will continue to grow faster than overall e-commerce, therefore accounting for an ever-increasing portion of the e-commerce market.

The enormous success of m-commerce is linked to apps, which are becoming more and more popular. Apps are convenient, safe, quick, and simple to use. In the global m-commerce market, shoppers are already using apps in preference to browsers. Increasingly, commercial models will be linked to these apps - which will lead to further spectacular growth in m-commerce. BuddeComm sees the development of m-wallet apps, in particular, as a major breakthrough for the m-payment sector.

The digital economy has brought about huge changes in the publishing industry - from digital printing presses, to indie authorship, to e-books. One of the downfalls is that self-publishing has become too easy, so that the market is flooded with low quality, poorly edited books. This has given self-published e-books a bad press. The dilemma is a thorny one, with many different interests at war. In the end, the consumer must be the one to rebalance the market.

In early 2015, the press was filled with reports that the physical book market had made a comeback and that e-books had had their day. But according to statistical data, while sales of print books rose slightly in 2014, e-book sales rose even more, further increasing their share of the overall book market.

Advertising and Marketing in the Digital Age

The advertising scene has undergone radical change and is still changing. With profits down between 5% and 10% on an annual basis, the performance of the traditional advertising market is under constant pressure. Data analytics is exposing the weakness of these traditional advertising business models and, like all of the other sectors affected by the digital economy, this means that these business models need to change. As they become more aware of the power of big data, advertisers are demanding hard, quantitative data on their campaigns. Increasingly, campaigns are now linked to outcomes. These are predetermined and tested against the results, and payments are made to advertising agencies based on the success of these campaigns, which are becoming far more cost-effective.

Social media companies are becoming increasingly important website publishers. Compared to commercial broadcasters, these companies have one important difference - they have valuable data on their consumers, which they are monetising in a big way. Although consumers are happy to share data with companies operating in the digital economy, they are most unhappy when these companies disrespect their wishes for privacy. On the other hand, many companies involved in big data analytics are disappointed with the results. So a better system could be a win-win situation for both the demand and the supply side.

Online Retailing

While online sales have been growing at around 20-30% annually, the overall market share was still under 10% of the overall market in early 2015. Many users cite the reasons of availability, convenience and pricing as well as delivery options as some of the reasons for purchasing online.

There are many choices from offshore e-tailers offering low cost deliveries, with onshore businesses that operate a retail web presence providing service and communication at a local level. Low start-up costs and minimal barriers to entry have seen many enterprises including bricks and mortar stores and online only stores successfully operating in the direct sales to consumers market.

E-Banking

Australians are one of the world's biggest users of online banking. EFT (electronic funds transfer) is very popular in Australia, and the BPAY consortium, owned by Australia's Big Four banks, is widely used to pay bills. However, the more consumer-driven developments such as m-banking took longer to emerge. After decades of procrastination, and ultimately pushed by development from companies such as Apple and Google, the era of m-payments has now taken off in a big way, with all four banks now facing breakneck growth in m-payments. 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 the end of 2015 it is expected that m-banking will have overtaken the online banking in the number of transactions done electronically.

Table of Contents

1. The E-Commerce and M-Commerce Markets

  • 1.1. Global e-commerce market
    • 1.1.1. The digital commerce evolution
    • 1.1.2. A different approach to employment
    • 1.1.3. Omni-channel retailing
    • 1.1.4. Global e-commerce market statistics
    • 1.1.5. Leading B2C e-commerce players
  • 1.2. Key e-commerce insights
    • 1.2.1. Underlying trends
    • 1.2.2. E-payments
    • 1.2.3. Content Delivery Networks (CDNs)
    • 1.2.4. Cloud computing and e-commerce
    • 1.2.5. Security concerns
  • 1.3. E-books and e-newspapers
    • 1.3.1. Digital e-readers/e-books
    • 1.3.2. The challenging newspaper publishing sector
  • 1.4. Internet banking (E-banking)
    • 1.4.1. The changing face of e-banking
    • 1.4.2. Banks under e-pressure
    • 1.4.3. Bitcoin
  • 1.5. Global m-commerce market
    • 1.5.1. M-commerce buzzword: SoLoMo
  • 1.6. Key m-commerce insights
    • 1.6.1. M-payments
    • 1.6.2. M-banking
    • 1.6.3. Mobile auctions
    • 1.6.4. Mobile location shopping and marketing
    • 1.6.5. Mobile vouchers, coupons and loyalty cards
    • 1.6.6. Mobile advertising

2. Advertising and Marketing in the Digital Age

  • 2.1. Market summary
  • 2.2. Market insights
    • 2.2.1. Changes in internet advertising
    • 2.2.2. The effect of big data on the advertising industry
    • 2.2.3. Online advertising does not improve the overall result for advertisers
    • 2.2.4. Mobile advertising
    • 2.2.5. Mobile Location-Based Advertising (MLBA)
    • 2.2.6. TV advertising
    • 2.2.7. Digital ad exchanges
    • 2.2.8. A multi-screen approach gains attention
  • 2.3. Key online advertising categories
    • 2.3.1. In-game advertising
    • 2.3.2. Social network advertising
    • 2.3.3. Online video advertising
    • 2.3.4. Search engine advertising
  • 2.4. Internet media companies - selected insights
    • 2.4.1. Overview
    • 2.4.2. Google - advertising revenues continue to grow
    • 2.4.3. Yahoo - digital display ad revenues slump
    • 2.4.4. Hulu - an unusual dual revenue model
    • 2.4.5. Facebook - prepared to operate in different markets
    • 2.4.6. Amazon's rising threat
  • 2.5. Consumers in focus
    • 2.5.1. Consumers will lead the way
    • 2.5.2. Consumers react to privacy misuse by Internet companies
    • 2.5.3. Consumers are the serfs of the feudal internet companies

3. The Digital Economy drives Sector and Industry Transformations

  • 3.1. Introduction
  • 3.2. How to better balance the Federal Budget?
    • 3.2.1. May Budget 2015
  • 3.3. The digital economy - what is at stake?
    • 3.3.1. The size of the digital economy
    • 3.3.2. The effects of the digital economy are all around us.
    • 3.3.3. Commercial Sectors
    • 3.3.4. Global competition
    • 3.3.5. Healthcare
    • 3.3.6. Education
    • 3.3.7. ICT Investments needed
  • 3.4. Lack of vision - politicians absorbed by costs of ageing economic models
  • 3.5. Government misses out on developing a smart economy
  • 3.6. Australia's two-tiered economy
  • 3.7. Australia's digital transformation is underway
    • 3.7.1. National Broadband Infrastructure
    • 3.7.2. Cloud computing, Big Data, M2M
    • 3.7.3. The need for digital productivity
  • 3.8. Developed economies not ready for an ICT-driven recovery
  • 3.9. ICT tools can provide $8 billion of annual savings
  • 3.10. Transformation based on smart infrastructure
  • 3.11. Selected Industry and sector transformations
    • 3.11.1. Government Transformation
    • 3.11.2. Digital Technology transforming the mining sector
    • 3.11.3. Transformation of the energy market
    • 3.11.4. Digital economy transforming the banking industry
    • 3.11.5. Omni-channel changing Retailing
    • 3.11.6. Book Industry
    • 3.11.7. The transformation of the disability sector
  • 3.12. Statistical information and economic benefits
    • 3.12.1. The impact on the economy
    • 3.12.2. The thousands of unreported benefits of high-speed infrastructure
    • 3.12.3. Digital Australia - statistical findings
  • 3.13. Secrecy and incompetence undermining the digital economy
    • 3.13.1. Dysfunctional policies
    • 3.13.2. TPP - secrecy in politics continue
    • 3.13.3. Data retention policy - more risks than gains?

4. Business Market - Trends and Statistics

  • 4.1. Market statistics and surveys
    • 4.1.1. Businesses underusing digital tech
    • 4.1.2. Government lags in digital leadership
    • 4.1.3. Deloitte: digital economy to hit $139 billion by 2020
    • 4.1.4. Digital marketing survey
    • 4.1.5. Costs still hampering digital enterprises.
    • 4.1.6. SMEs are driving the digital economy
    • 4.1.7. Digital economy - business internet income
    • 4.1.8. Digital engagement SMEs
    • 4.1.9. Sensis e-Business Report - 2014
    • 4.1.10. e-trade index
  • 4.2. Smart Farming
    • 4.2.1. Smart Farm Armidale
  • 4.3. The mining sector
  • 4.4. SmartICT

5. Online Retailing - Trends and Statistics

  • 5.1. A snapshot of the retail industry
    • 5.1.1. Statistical Overview
    • 5.1.2. ICT spend in retail sector
  • 5.2. Market Surveys and statistics
    • 5.2.1. eWAY Q1 2015 Online Retail Report
    • 5.2.2. Consumers in the digital economy
    • 5.2.3. NAB Online Retail Sales Index
    • 5.2.4. Boomerang browsing
    • 5.2.5. Sunday shopping
    • 5.2.6. Over-65s go shopping online
    • 5.2.7. Low digital commerce adoption for retailers
    • 5.2.8. Online shoppers becoming more critical
    • 5.2.9. ABS: Online business reached $246.4bn
    • 5.2.10. Online shopping sales to reach $25bn by 2015
    • 5.2.11. Internet e-tailing to continue rises towards 2020
    • 5.2.12. Spending online to grow as tablet and smartphones uptake increases
    • 5.2.13. Omni-channel communication with customers
  • 5.3. Trends and Developments
    • 5.3.1. Australia still waiting for in-store e-shopping - Analysis
    • 5.3.2. Omni-channel Retailing
    • 5.3.3. Funky Retail
  • 5.4. Key players
    • 5.4.1. Westfield
    • 5.4.2. Amazon
    • 5.4.3. The Kogan store
    • 5.4.4. Woolworths
    • 5.4.5. carsales.com.au
    • 5.4.6. Surfstitch
    • 5.4.7. Mnemon
    • 5.4.8. Alibaba
  • 5.5. Online auctions
    • 5.5.1. eBay
    • 5.5.2. Quicksales
    • 5.5.3. Gumtree
  • 5.6. The Coupon Market
    • 5.6.1. Overview
    • 5.6.2. Major players

6. E-Banking

  • 6.1. The banking sector
  • 6.2. Trends and Developments
    • 6.2.1. Business embracing electronic payments
    • 6.2.2. Cashless Australia
    • 6.2.3. M-banking
    • 6.2.4. New Payments Platform
  • 6.3. Market Analyses
    • 6.3.1. Banks under e-pressure
    • 6.3.2. Traditional banking under threat
    • 6.3.3. Banks were slow of the mark
    • 6.3.4. Innovation remains a problem for the banks
    • 6.3.5. Digital economy will affect bank fees
  • 6.4. Trends and developments in mobile payments
    • 6.4.1. Mobile ID for Mobile banking
    • 6.4.2. Push for universal mobile payments system
    • 6.4.3. E-payment trends - HP-RFI Report 2014
    • 6.4.4. Wave Payments
    • 6.4.5. FLASHiZ
  • 6.5. Bitcoin
    • 6.5.1. Introduction
    • 6.5.2. CoinJar
  • 6.6. Projects and Services
    • 6.6.1. Commonwealth Bank of Australia (CBA)
    • 6.6.2. Australia and New Zealand Bank (ANZ)
    • 6.6.3. Westpac
    • 6.6.4. St.George Bank
    • 6.6.5. NAB
    • 6.6.6. MasterCard
    • 6.6.7. Visa
    • 6.6.8. NFC-powered mobile wallet from Coles
    • 6.6.9. PayPal
    • 6.6.10. Stripe
    • 6.6.11. mHITs
    • 6.6.12. NoQ
    • 6.6.13. Mint Wireless
    • 6.6.14. Cash by Optus
    • 6.6.15. Eftpos
    • 6.6.16. Moula - e-loans
    • 6.6.17. SocietyOne. - peer-to-peer lending

7. Advertising, Statistics, and Revenues

  • 7.1. Analysis of developments in the advertising industry
    • 7.1.1. The effect of big data on the advertising industry
    • 7.1.2. Online advertising does not improve the overall result for advertisers
  • 7.2. The online advertising market
    • 7.2.1. Online advertising market is maturing
    • 7.2.2. Online expenditure - 2013
    • 7.2.3. Demographic statistics
    • 7.2.4. Online advertising revenue statistics
  • 7.3. Mobile internet advertising
    • 7.3.1. Background
    • 7.3.2. Mobile advertising to mature
    • 7.3.3. Mobile devices increase growth in online video advertising
    • 7.3.4. Generation Y is driving the online media push
    • 7.3.5. Underinvestment in mobile advertising
  • 7.4. Other Market surveys
    • 7.4.1. Insights into the world of Internet Marketeers
    • 7.4.2. Australia leader in digital marketing
    • 7.4.3. Social media sites linked to advertising and buying patterns
    • 7.4.4. Business advertising to get traffic
    • 7.4.5. Business presence on social media
    • 7.4.6. Social Networking Sites
    • 7.4.7. Children, internet and social networks
    • 7.4.8. PwC's Australian Entertainment & Media Outlook 2014-2018
    • 7.4.9. Search advertising revenues
    • 7.4.10. Different (digital) working arrangements
    • 7.4.11. Being online worth £1,000 a year: BT study
  • 7.5. Website usage statistics
    • 7.5.1. Top 10 Australian websites - 2010 - 2014

List of Tables:

  • Table 1 - Global e-commerce spending - 2011 - 2016
  • Table 2 - Top 10 web properties worldwide - 2015
  • Table 3 - Global e-reader shipments and annual change - 2009 - 2015
  • Table 4 - Most popular platforms for receiving news in the UK - 2013 - 2014
  • Table 5 - Most popular formats for receiving news in the USA - 2010; 2012
  • Table 6 - Global m-commerce sales - 2012 - 2018
  • Table 7 - Global m-commerce sales by region - 2013; 2017
  • Table 8 - US m-commerce sales - 2011 - 2017
  • Table 9 - Global app store revenue - 2011 - 2016
  • Table 10 - Global media ad spending and annual change - 2011 - 2016
  • Table 11 - Global digital ad spending and annual change - 2011 - 2016
  • Table 12 - Global mobile internet ad spending and annual change - 2011 - 2016
  • Table 13 - Ad spending by major countries - total media, digital, mobile internet - 2014 - 2015
  • Table 14 - Top ten countries by ad spending per person and per digital Internet user - 2014
  • Table 15 - Market share of mobile internet advertising revenue - major companies - 2012 - 2014
  • Table 16 - Social network advertising revenue by region - 2013 - 2015
  • Table 17 - Global search engine advertising revenue - major companies - 2013 - 2015
  • Table 18 - Google advertising revenue (total and mobile) - 2006 - 2014
  • Table 19 - Facebook advertising revenue (total and mobile) - 2011 - 2014
  • Table 20 - Business internet income and annual change - 2002; 2007 - 2014
  • Table 21 - Top 5 uses of the internet by businesses - 2009 - 2014
  • Table 22 - The top 5 categories purchased by businesses using the internet - 2009 - 2014
  • Table 23 -Selling over the internet - 2009 - 2013
  • Table 24 - Selling over the internet by industry sector - 2014
  • Table 25 - Businesses with and the effectiveness of websites - 2009 - 2014
  • Table 26 - Top 5 uses of mobile internet - 2009 - 2014
  • Table 27 - Australians accessing the internet with a tablet - 2014
  • Table 28 - Top 5 internet applications used on a tablet in the past 12 months
  • Table 29 - Social networking use by businesses - 2010 - 2014
  • Table 30 - Estimated retail trade revenue online and traditional - by industry
  • Table 31 - Online shopping growth Year on Year (YoY) in transactions by day of week
  • Table 32 - Online shopping transactions by time of day and percentage growth YoY
  • Table 33 - Rapid uptake - September 2011 - March 2014
  • Table 34 - Key statistics for ANZ goMoney - 2014
  • Table 35 - General display industry categories market share - 2013
  • Table 36 - Market shares of key online advertising markets - 2008 - 2013
  • Table 37 - Online advertising expenditure and forecasts - 2000 - 2015
  • Table 38 - Estimated mobile device advertising in Australia - 2008 - 2015
  • Table 39 - Use of social networking sites by age group - 2008 - 2014
  • Table 40 - Use of social networking sites by demographic - 2008 - 2014
  • Table 41 - Estimated online paid search advertising revenue - 2005 - 2006; 2010 - 2013
  • Table 42 - Top ten websites by unique Australian audiences - 2010 - 2014

List of Charts:

  • Chart 1 - Global m-commerce growth (projected) - 2013 - 2018
  • Chart 2 - M-commerce regional sales - 2013; 2017
  • Chart 3 - Major countries - overall, digital, and mobile ad spending - 2014
  • Chart 4 - Overview of business internet income and annual change - 2007 - 2014
  • Chart 5 - Overview of the top 5 categories purchased by businesses using the internet - 2009 - 2014
  • Chart 6 - Overview of percentages of businesses online - 2009 - 2014
  • Chart 7 - Overview of the trends of the top five uses of mobile internet - 2009 - 2014
  • Chart 8 - e-Trade Readiness Index rankings - 2014
  • Chart 9 - Overview of online advertising expenditure and forecasts - 2003 - 2015
  • Chart 10 - Overview of social networking use by age group - 2010 - 2014
  • Chart 11 - Overview of paid search advertising revenue - 2005 - 2006; 2010 - 2013

List of Exhibits:

  • Exhibit 1 - Digital economy - key developments
  • Exhibit 2 - Popular online activities
  • Exhibit 3 - Other e-commerce business model examples
  • Exhibit 4 - European Commission e-commerce five priorities - 2012
  • Exhibit 5 - Examples of popular online retail websites around the world
  • Exhibit 6 - Walmart
  • Exhibit 7 - The rise of PayPal
  • Exhibit 8 - Statistical snapshot of e-books
  • Exhibit 9 - Amazon versus Hachette
  • Exhibit 10 - Price fixing allegations
  • Exhibit 11 - Mobile apps examples across various sectors
  • Exhibit 12 - M-payments in Japan
  • Exhibit 13 - Digital advertising cost considerations
  • Exhibit 14 - Middle East offers online advertising potential
  • Exhibit 15 - Online ad deal between Google and Yahoo aborted
  • Exhibit 16 - Top industries spending on mobile advertising - 2014
  • Exhibit 17 - Anarchy Online by Funcom
  • Exhibit 18 - Statistics shows customers don't trust B2B companies
  • Exhibit 19 - How does broadband relate to economic development?
  • Exhibit 20 - Key ICT business tools
  • Exhibit 21 - Woolworths online sales hit $1.2bn
  • Exhibit 22 - Example items sold on average in Australia on eBay
  • Exhibit 23 - What's selling on eBay mobile in Australia
  • Exhibit 24 - Interesting items from online auctions
  • Exhibit 25 - AussieCommerce
  • Exhibit 26 - Participating financial institutions
  • Exhibit 27 - PayPal SMB Statistics - 2013
  • Exhibit 28 - Overview of Q-Jumper and Easy Canteen by mHITs
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