Australian online advertising spend growth decelerates in 2022: IAB Australia
Australia’s online advertising expenditure reached $14.2 billion in the calendar year 2022. While the number marked a 9.1% increase year-on-year (YoY), it was a deceleration compared to the 36% increase reported in 2021.
The data was released in the IAB Australia Online Advertising Expenditure Report (OAER), prepared by PwC Australia. This marks the first time audio expenditure is reported in partnership with Commercial Radio & Audio (CRA).
CEO of IAB Australia, Gai Le Roy, said: “2022 had two distinct growth phases, with 15% for the first six months compared to 2021 and 4% growth in the second half of the year.
“Despite this slow down, we are seeing encouraging signs including automotive advertiser’s share of display advertising returning to levels not seen since early 2021.”
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Classified ads expenditure had the biggest growth rate of 14% ($2.5 billion) but search and directories saw the biggest increase of $6.2 billion (8.5%).
Digital audio ad spend reached $221.2 million for the calendar year, with streaming attracting 63% of the expenditure and podcasting 37%.
CEO of CRA, Ford Ennals, said “Digital audio has emerged as a category following soaring growth in listener numbers and strong interest by advertisers and is now one of the most significant growth markets in Australian media.
“It’s great to be able to confirm with IAB that this market has grown so quickly from nothing to over $220 million in an incredibly short space of time.”
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The top five advertising categories in general display advertising remained consistent year on year, with retail, automotive and FMCG stable, entertainment share increasing slightly and finance share decreasing slightly.
The share of content publishers’ inventory bought via an agency insertion order has increased from 42% in 2021 to 44% in 2022.
IAB recently underwent some board changes that saw Pedestrian Group CEO Matt Rowley replacing Nicole Bence as the chair. Bence departed Seven West Media earlier this year to join Nova Entertainment as its chief commercial officer.
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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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