FMCG online spending growth continues as IAB challenges Think TV claims

November 30, 2016 10:08

The online advertising industry has returned challenged claims made by the TV industry that online advertising led to short-term losses for FMCG marketers, saying FMCG brands continue to grow their investment in online video.

The PWC/IAB Online Advertising Expenditure Report shows total spending for the Q1 of the 2017 financial year rose to $1.88b – a 20.3% lift on the same period last year, but the annual growth rate continued to slow from the 33% uplift seen between 2014 and 2015.

While growth continues to slow overall, IAB CEO Vijay Solanki said major FMCG marketers, including Kimberly Clark, Unilever and Procter & Gamble, continue to invest heavily in online video.

Solanki: waiting to see Think TV’s research

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Simon Canning

Simon Canning was Mumbrella's marketing and advertising editor from 2015-2017. In a career spanning journalism and communications over more than 30 years Simon has become one of Australia’s most respected analysts and commentators on the advertising, marketing and media industries. A regular commentator on radio and TV, Simon has also worked in media in the US and UK .

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2 COMMENTS

Agency guy 30 Nov 16

I have to say, these ‘mine’s better than yours’ arguments playing out for us all to witness are really quite pathetic.

The Think TV piece has an obvious agenda, that much is clear – no way in hell that the TV execs of Nine (in particular) and Seven are not reeling from the fact they re losing so much revenue this year. And sorry, but the fact Ebiquity have conducted the research (another company with a huge amount to lose from falling TV revenues) does not make it credible.

But the fact is this ROI research is just not defendable – it shows that no other media aside from TV provides a positive ROI…so investing into any other media is therefore pointless…that’s the crux of it…sorry Think TV & Ebiquity, but that simply does not pass the BS test.

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Andrew Sardini 30 Nov 16

You cannot rely on the IAB adspend figures. PwC who prepare their adspend reports make it clear in their methodology statement that they give no warranty whatsoever as to the reliability of their figures.

Why? Because Google, Facebook and others do not publish any ad revenue figures for Australia – a classic example of the lack of transparency in the online sector and the digital smoke and mirrors we hear about all the time from Mark Ritson and others.

Take your pick – who you believe:
The vested interests of the IAB with the help of PwC telling us that nearly 50 cents in every ad dollar is spend online OR

The highly accurate, indisputable independent figures from SMI telling us media agencies invest somewhere about 26% online.

Leave it to you to decide . . .

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