Australian digital advertising growth softens in September quarter: IAB and PwC
The Australian digital advertising market has reached $3.455 billion in the latest quarter – an increase of 6.5% in the same period in 2021, an IAB and PwC report found.
Digital advertising growth in the quarter ending 30 September this year softened by 4.9% compared to the June quarter.
An earlier IAB report found the digital advertising industry has contributed $94 billion to GDP (4% of overall) and supported over 450,000 jobs between 2011 and 2022.
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Video advertising outperformed the overall general display market, but its growth decelerated as advertisers pull back their spend.
Connected TV continued its steady increase in share of content publishers video revenue, increasing to 49% of spend, while desktop decreased slightly to 31% share and mobile held at 20% of expenditure.
Category-wise, only classifieds saw spend increasing by 4.7%, driven by record job ad volumes. General display advertising decreased by 4.9% in spend for the quarter, while search and directories decreased by 8.4%.
Classified advertising held 19% share of spend ($644 million), with search & directories at 42% ($1.475 million) and general display held at 39% ($1.336 million).
Gai Le Roy, CEO of IAB Australia commented: “Overall the results for digital advertising investment were positive for the September quarter, with classified listings market being the standout performer driven in a large part by the employment market.
“The display market was softer than we have seen in previous quarters and while we are seeing some caution around marketing investment, the comparative quarter in 2021 was bolstered by Olympic related ad dollars.”
Retail advertising held its leading position of expenditure, while real estate and automotive also held their top five ranking. Entertainment was the standout for the quarter, entering the top five for expenditure, while spend in the finance category decreased.
Agency’s share of content publishers inventory increased for the quarter across standard display, infeed, and video advertising. While programmatic trading and agencies buying via an IO still dominate the buying methods, this quarter showed the steady shift in towards programmatic guaranteed deals is continuing, overtaking direct sales.
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Darcy Song was a reporter at Mumbrella, covering media owners, adtech and social platforms. She left in October 2023.
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