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Online ad spend hits fastest growth in five years

Online advertising spending has grown at its fastest rate in five years, leaping $1.6b to reach $$6.8b, led by a 72% jump in mobile advertising.

IAB 2016 shareThe figures for the 2015/2016 financial year released by the Interactive Advertising Bureau and PWC showed growth of 29.7%, the largest yearly jump for five years.

Mobile grew to $1.96b with spend split between search, with 43% and display with 57%.

Search and directories continued to be the dominant category, representing $3.1b of the pie and growing by 24%, but lost share to general display, which grew by 43% to $2.5b.

Video advertising remained a fragment of the total, up 55% to $600m but showed both advertisers and consumers were becoming more comfortable with the format with video now making up 24.3% of all general display advertising.

IAB 2016 growthIAB Australia CEO, Vijay Solanki, said the growth was being seen across all sectors, but was led by real estate and automotive.

“Another year of double-digit growth, driven by the continued rise of the mobile and video category, means that online advertising heads closer to half of all advertising spend,” Solanki said.

“It’s brilliant to see real estate along with the automotive, retail and FMCG categories lead the way.  They have built capability across all digital platforms especially in mobile and video.  They know how to use content, technology and data to help achieve their marketing goals efficiently.”

Supported by last’s years boom in property prices the real estate sector lead the way in growth, up from a share of 10.8% to 13.2%, but the automotive sector remained the most dominant with a 17% share.

Retail lifted by 1.2% to 10.4%, while on a quarterly basis, total spending grew by 4.9%.

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