Aussie consumers are using their mobile devices to send money through the internet and to advertise their products, with a surge in the past year driving sales to a record high.
In the six months to June 30, Australian consumers spent $1.26 billion on advertising through SMS, according to a new study from advertising analytics firm FourFourSecond.
This includes the $939 million spent on Australian-based telcos, who spent $2.19 billion on SMS advertising, a 22 per cent increase from the previous six months.
But the big spenders on the market, including mobile phone companies, are the major telcos and internet service providers.
Advertisers are paying for ads to appear on mobile websites and online news sites, while paying for the placement of ads on mobile devices through their own branded advertising.
For example, a mobile ad with a video showing a young man running around a park can be placed in a news site, where the advertiser can sell it to the consumer.
The study shows Australians spent $7.5 billion on mobile advertising through June 30.
But those are the big-spending players.
There are also a number of smaller, less well-known players who are taking advantage of the increasing popularity of mobile phones.
There are more than 30 companies in Australia selling and advertising on mobile phones, but none have been able to capture the $2 billion they spent on advertising in the previous 12 months.
The main players include:The major telco, Telstra, spent $3.1 billion on Australian advertising in June.
But it is the mobile phone company Optus that has made a name for itself with its SMS advertising.
It has seen its revenues increase by $8.2 million to $7 million per day in the six-month period, the highest level in more than a decade.
Optus, which is owned by telecommunications giant Telstra Inc, has been spending a lot of money on mobile ads in Australia, paying an average of $1,500 per minute for a six-second ad in the last 12 months, compared to $750 per minute in the same period last year.
Its biggest rival, the Australian online advertising marketer, The Reach Group, has a big ad spend, spending $2 million per minute on mobile in the month of June, compared with $1 million a minute in June last year, according for example to data from research firm ComScore.
And there are plenty of smaller companies who are doing the same, with only one company making a profit in the first six months of the year, a Melbourne based media and media marketing company called AdSense.
The ad spend for AdSense was $1 billion in June, the company said in a statement.
AdSense is not alone.
A number of major online advertising firms are also spending on advertising.
Adblock Plus, which was founded in 2014, is the biggest player in Australia.
It is also one of the biggest spenders in Australia on advertising, according data from comScore.
AdBlock Plus has a strong advertising network, with more than $20 million in ad spend last year and more than 2.3 million users in Australia who can purchase and subscribe to ads.
It is not the only online company doing well.
A major advertising and content platform called Adsense, based in Sydney, is also enjoying record growth.
Its ad spend is up nearly 30 per cent in the year to June this year to more than the average of the top 10 ad spenders.
The Australian ad tech firm adtech, which also operates online ad platforms such as AdWords, is growing faster than the big players.
Adtech’s revenue grew by $3 million in the 12 months to March 31, according the company.