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Australian mobile ad spending passes billion dollar mark as digital advertising grows 13%, says IAB and PWC

Australia’s digital marketing spend grew 13.2% year on year, claims the IAB and PwC in the latest Online Advertising Expenditure Report.

The report, covering the September quarter of 2018, said total digital ad spend was 2.24bn, up from $1.98bn the year before and an increase of 1.6% from the previous quarter.

Leading the growth was  video which jumped 17.9% on the previous year, however all categories grew with general display advertising jumping 18.1%, classifieds up 10.1% and the search & directories sector increasing 10.6%.

Search and Directories continues to represent the largest proportion of the online advertising market in Australia at 44 percent ($983.2m) for the September quarter, with General Display at 37 percent ($822.8m) and Classifieds at 19 percent ($429.7m).

Mobile advertising was 62% of total general display expenditure in the September 2018 quarter, PwC found. An increase from 56% in the June 2018 quarter and representing a $1,078.3m spend for the year.

Videos ads took the greatest chunk of general display expenditure for the quarter with a 40% share, followed by content, native and infeed ads at 37% of the market with banner/ standard display formats taking 21%.

The IAB’s Gai Le Roy cited video advertising as driving Australia’s online advertising market

Gai Le Roy, CEO of IAB Australia, said the continued increase in video advertising reflects the rapid increase in video consumption on digital devices, with adult Australians now consuming nearly 31 hours per month on digital devices – an increase of 23% year on year.

“Marketers are continuing to reinvest in digital advertising targeting people where they are spending record levels of time-consuming media. Adult Australians are now spending over 90 hours per month on their devices and this is creating new advertising opportunities that can help businesses grow.”

On a sector basis, there was an increase in the finance and FMCG industries’ share of general display. Despite softening on the prior quarter, automotive advertising continued to lead expenditure in the general display market for the September quarter 2018, making it the leading category for over five consecutive years.

The full report is available for IAB Australia members on the IAB website.

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