Online ad spend increases as lack of consumer confidence forces marketers to focus on ‘short-term sales targets’
Online advertising expenditure has reached $3.746 billion for the quarter ended March 31, a 9.3% increase according to data released by IAB Australia, the peak trade association for online advertising.
The results come after the IAB Australia Online Advertising Expenditure Report (OAER) reported a 4.2% easing in spend from the preceding quarter.
Compared to the same period last year, search and directories grew by 9.3%, reaching $1.724 billion, while general displayed advertising driven by social, audio and video increased by 14.8% ($1.410 billion). Meanwhile, classifieds expenditure dropped 1.8% year on year ($612 million).
The rise of video and audio advertising was prominent in the results, with video expenditure increasing 21% to $944.9 million and audio expenditure increasing 26% to $65.6 million.
Travel and finance stayed in the top five general display industry categories for this quarter, joining retail, automotive and health and beauty, each of which experienced increased market share.
IAB Australia CEO Gai Le Roy said search, social video, and audio have been the star performers, helping bolster the traditionally slower first quarter results.
“The report suggests that many marketers are focused on short-term sales targets with the continued economic downturn and lack of consumer confidence. However, it is encouraging to see continued investment in digital advertising, and we encourage marketers, where possible, to ensure that they are diversifying their investment to take advantage of the media multiplier effect.”
The IAB Australia OAER was prepared by professional services giant PwC Australia.
Subscribe to the daily newsletter
Have your say