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Online advertising market grows 5.6% to $9.3bn

Growth may have slowed in the Australian online advertising market, but it still climbed 5.6% year-on-year throughout 2019 to reach $9.3bn, the new IAB Australia Online Advertising Expenditure Report (OAER) says.

47% of content publishers’ general display inventory was bought via media agencies using either an insertion order or another non-programmatic method. 29% of general display advertising was bought programmatically with a fixed CPM, and 8% via guaranteed inventory.

17% was bought directly by advertisers.

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Automotive advertising continued to lead general display expenditure at 21.5%, while retail increased its use of video advertising for the year to reach a 10.7% share. Travel accounted for 7.5%.

Gai Le Roy, CEO of IAB Australia, noted the market is under pressure.

“It should be no surprise to people in the industry to see a slowing of digital ad growth in 2019 as the whole market has seen media investments under pressure and the growth rate under half of what the market experienced in 2018,” she said.

The report noted general display advertising grew 5.1% for the year to reach $3.5bn, search and directories climbed 7.7% to $4.2bn. Classifieds was up 1.7% to $1.76n.

Video was the growth driver in the general display category, with 19.9% growth year-on-year.

“We have seen a further shift in video inventory dominating the overall general display category and standard display formats contracting by 16%,” Le Roy said. “It was encouraging to see the travel advertiser category gain share following investment and development of travel content by a number of publishers.”

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