) Outdoor Advertising - Comparative market shares

Below is an international breakdown of outdoor advertising expenditure based on 2008 revenue results.

• 
  Telstra
  
• 
  Coca-Cola South Pacific
  
• 
  Virgin Blue Airlines
  
• 
  Paramount Pictures
  
• 
  Fosters
  
• 
  Unilever
  
• 
  Vodafone
  
• 
  Lion Nathan
  
• 
  Road show Film Distributors
  
• 
  Commonwealth Bank
  

The table below shows the total market size for 2006 as $5750 Million. From 2004 to 2005, it had changed 20%. From 2005 to 06, it has changed 4.4%. If we assume a 1% boost from 2006-07 Ceteris Paribus with Free Trade Agreements and incentives not changing, we obtain $5807.5 Million. From 2007-08 we assume a 0.25% increase in size; we get US $5953 Million for 2008 as the market size of Australian IT services.

The total revenue is now summed up in the table below:

This figure of US $45 Billion is then factored by:

1. 
   The percentage of marketing budget that companies are prepared to spend on acquiring eye-tracking services
   
2. 
   And the percentage of companies in Australia willing to spend on eye-tracking
   

According to survey results, the web has been the leading media used for marketing services/products by businesses. Also following closely is Print media and video.

Although Games and video are indicative of the future trend, clearly the Web overtakes them in the expert opinion poll. Hence, we must look at the market size of customers who may buy eye-tracking service for their website usability testing.

Using the outcomes from our research, we deduce that 33.3% were willing to spend 5-10% of their total usability services budget on eye-tracking. Also, more than 46% were willing to spend anywhere between 1 and 30% on eye-tracking (responses from a sample size of 46 experts/industry personnel in Australia interviewed through questionnaires).

Figure 16 - Estimating the market size

We assumed that usability services formed around 5% of the companies’ marketing budget. Taking into account that the marketing budget varies according to the situation of the economy and the company’s performance & sales, we split our analysis into 3 scenarios:

Scenario 1 – Boom

Let us assume that the marketing budget forms about 10% of the company’s total revenues (Reference: http://www.marketingprofs.com/ea/qst_question.asp?qstID=16095 , as viewed at 16/08/09). In this case, assuming a 10% overall estimate of marketing budget, our sum total of revenues factors down to US $4.5 Billion – a sum dedicated to marketing budget.

Assuming homogeneity in marketing spending, we factor 4.5 billion by 5% to deduce that US $225 million would be spent on usability services.

15% of $225 million, i.e. US $33.75 Million would be spent on eye-tracking.

Thus, this gives us a rough estimate of eye-tracking market size to be US $33.75 Million.

Scenario 2 – Stagnation

Let us now weigh down our marketing budget from 10% to 6% of the total revenue. In this case, the potential size of eye-tracking market would come down to US $20.25 Million.

During recession, companies might spend 2-3% on marketing. Hence, the companies’ net spend on eye-tracking would reduce to US $6.75 Million given usability spending is 45 Million.

Our primary research shows that all of the respondents who saw 10-20% gain in Eye-tracking vs. other methods of usability testing were willing to spend 5-10% of the usability budget on eye-tracking. More than half of personnel questioned (54%) felt that 10-20% of customer value could be gained by buying eye-tracking services. This is an indication that a reasonable number of people are willing to spend. However, there might be barriers to purchasing decisions of the consumer. Our research indicates that delivering awareness of eye-tracking services to customers would increase the scope for our sales.

However, hardly any initiative to penetrate the eye-tracking market would result in a gain of over 40%. Hence, the market potential is has an upper limit at the moment, bounded by in-market factors.