Australian online advertising spend growing despite gloomy forecast
Online advertising has ballooned to over $3.7 billion for the September quarter, despite the economic slowdown and dire predictions of an industry-wide decline.
According to the IAB Australia Online Advertising Expenditure Report, online advertising increased 7.8% year-on-year, and 2.1% from the June quarter, to reach $3.732 billion for the three-month period.
Search advertising was where the majority of budgets went, with $1.63 billion spent on search and directories – despite dropping 1.6% from the June quarter. $1.451 billion was spent on general display advertising (up 2.7% from June), with $649.2 million going on classifieds – an 11.8% increase from the prior quarter.
Audio advertising (podcasts, etc.) was worth $68 million – flat from June, but up 16.2% year-on-year.
Video advertising was up 5% from the prior quarter to hit $968.1 million – a 15% leap from the same quarter last year. Connected TV advertising boomed during the September quarter, thanks in part to the runaway success of the Matildas. Advertisers spent 54% of their video inventory spend on connected TV advertising – up from 45% in the June quarter.
Desktop video advertising dropped during the same period, from 38% to just 25%, while mobile video investment rose from 17% of all video spend to 21%.
“It is encouraging to see marketers continue to invest in advertising to drive growth,” said Gai Le Roy, CEO of IAB Australia.
“However, investment in different media environments was not universal and the market was tough for many organisations.
“Retail continues to be the number one advertiser category with investment from local and global retailers. It is also pleasing to see the uplift in automotive advertising with share of spend in the general display category above 15% for the first time since September 2020.”
Got a tip?
Nathan Jolly is the Deputy Editor of Mumbrella. He joined the team in July, 2023.
Linkedin
Have your say