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Online advertising poised to overtake other channels, says IAB Australia

Online advertising now accounts for close to fifty percent of all Australian advertising spend, claims IAB Australia in its 2017 Online Advertising Expenditure Report.

Within the online advertising sector, mobile spending is almost equal with general display, although search still leads with both classified and video spending growing fast, the report found.

“Online advertising continues to deliver robust double digit growth and now accounts for close to 50 percent of advertising spend in Australia,” noted Megan Brownlow, editor, Australian Entertainment and Media Outlook at PwC. “Digital is now a grown up and established advertising medium and the continued evolution of video and mobile advertising. 

“Video in its own right is approaching a billion dollar business as more brands are realising the benefits of combining the persuasive brand building capabilities of video with the precision targeting that digital affords.”

Video spending was up 49% on 2016 to $900m, while mobile grew 33% to $2.6 billion. Search and directory spending still lead with $3.5 billion, up 12% over the previous year, while general display gained 10% to $2.7 billion.

IAB 2017 online advertising spend

Of the mobile advertising spending, the IAB attributed 46% to mobile search and 54% to display. Smartphones took seven dollars out of every ten dollars spent on mobile, with tablets taking up the balance.

Within the industry categories, automotive and real estate advertisers are the greatest online spenders with 18.5% and 12.1% respectively. The prominence of these two sectors is one of the reasons IAB Australia attributes to the relatively strong performance of online classified advertising in the local market.

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