December 5, 2018 Focus Report, ReportsFor decades, classifieds were the domain of newspapers, which offered advertisers cheap ads sorted under specific categories. The ads gave shoppers an easy way to browse various local offers, usually from private sellers. But, the jump from print to digital was inevitable and has proven itself to be quite lucrative for digital players. However, in the past few years, as the online classifieds market matures, leading digital classifieds players are attempting to diversify their revenues into new products and services. This is being driven by the need to ensure new sources of revenue growth and to drive customer acquisition and loyalty. In the real estate market, REA and Domain have introduced adjacent services such as mortgage broking and data analytics. In the recruitment market, LinkedIn and SEEK have been investing in technology companies involved in temporary hire, skill development, alternative recruitment and employee engagement.For decades, classifieds were the domain of newspapers, which offered advertisers cheap ads sorted under specific categories. The ads gave shoppers an easy way [...]
November 29, 2018 Market Outlook, ReportsAfter hitting record highs in March 2018, new car sales have recorded their seventh straight month of declining sales numbers as declining property prices and higher fuel costs are driving households to curb big-ticket purchases. Vehicle sales for October 2018 were 90,178 vehicles, down 5.3% YoY. Passenger cars declined 23.6% YoY driven in part by the preference for Sports Utility Vehicles (SUVs) which accounted for 44% of all new car sales in Australia for October 2018. While disruptors such as carsharing platforms (carnextdoor and goget) are reducing the need for car-ownership, there hasn’t been any visible impact on the automotive advertising market. We forecast Automotive Display Adex to grow at a 13.2% CAGR through to 2022 to A$891.2mn. Carsales is one of the largest players in the Australian online auto advertising market with a share of 37% in car listing volumes. Its average session duration is approximately two times that of its closest competitor, while the average number of daily unique visitors to its website is 57% higher.After hitting record highs in March 2018, new car sales have recorded their seventh straight month of declining sales numbers as declining property prices and h [...]
November 2, 2017 ReportsThe Australian car market is growing at a nominal rate and is expected to be unaffected by the winding up of local car production. Car sales have reached records levels, though the growth going forward will not be as fast as it was previously. Although new car sales are on the rise, they continue to be outpaced by used car sales. The CommSec car affordability index has hit the highest level since 1976, and vehicle sales are expected to reach 1.2m by 2023. Auto advertising is a major contributor to advertising expenditure. Auto advertising contributes 18% to total display advertising and 16% to the classifieds market. Vehicle advertising expenditure totalled A$689mn in 2016 and is expected to grow 21.3% to A$835mn in 2017. Carsales continues to be the dominant player in the online marketplace for cars. The company has over half of all car listings, and was the key beneficiary of the print to online shift. Although dealerships are expected to survive the closure of domestic production, they are facing a new threat in the form of digital disruption. New players are selling new and used cars online at relatively lower prices. Dealers would be required to incorporate digital into their value proposition in order to sustain their business.The Australian car market is growing at a nominal rate and is expected to be unaffected by the winding up of local car production. Car sales have reached record [...]
August 17, 2016 Reports
The online automotive market is in the fast lane, but speed bumps may lay ahead. We discuss the current and future market trends, including the ongoing transition from print to online advertising, current and future car sales, and how we expect business to be impacted by future market changes.
The online automotive market is in the fast lane, but speed bumps may lay ahead. We discuss the current and future market trends, i [...]
December 8, 2015 Reports
MVNOs have seen their market share grow in the last few years. However, we believe that we are now at ‘Peak MVNO’, thanks to rising costs, a declining price differential with MNOs and Vodafone’s return to growth. We forecast MVNO’s share to decline to 6.6% in 2020 from 8.3% currently, even as TPG outperforms by gaining share.
MVNOs have seen their market share grow in the last few years. However, we believe that we are now at ‘Peak MVNO’, thanks to r [...]