Online advertising spend up as video gets an Olympic-sized boost
Online advertising spend is up for the September quarter, driven by increased video spending during the Olympics.
Expenditure during the September quarter increased 12.1 % year-on-year, according to the IAB Australia Internet Advertising Revenue Report prepared by PwC Australia.
Total advertising expenditure for the quarter was $4.2 billion, with the video market enjoying a 19.5% increase year on year, making up $1.15 billion of the spend.
Classified expenditure increased by 13.8% to reach $700 million, while search advertising increased 9.8% to reach $1.8 billion – search spend makes up 43% of all internet advertising expenditure. Audio advertising increased by 16.2% to reach $79 million.
Display advertising dragged during the Olympic period, increasing just 2.5% year on year to reach $500 million.
Video advertising overtook audio as the fastest growing general display sub sector this quarter, thanks to increased Olympics spend. Desktop devices increased their share of the video advertising expenditure, jumping to 45%, while connected TV spend slipped back to 44%, and mobile video spend decreasing to 11%. Video displayed on social platforms now represents one third of total video expenditure.
Within audio internet advertising, podcast advertising increased its share of total internet audio advertising to 40%, representing a 26.5% increase since September 2023.
Gai Le Roy CEO of IAB Australia commented: “While the advertising investment market is still mixed, the strength of an audience engagement driver like the Olympics can have a major impact on ad spend and for the September quarter this was a key contributor to the year-on-year growth for video inventory.
“Search and social continues to experience solid growth, putting the calendar year for the digital ad market on track for low double-digit growth.”
Retail maintained its hold on general display advertising expenditure, with travel, finance and entertainment also seeing increased spend.
Automotive suffered a decrease in its share against the September 2023 quarter, while telcos enjoyed the largest increase in share this quarter, following the launch of new mobile devices.
Download the entire report here.
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Nathan Jolly is the Features Editor at Mumbrella. He joined the team in July, 2023.
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Advertising
digital
IAB Australia Internet Advertising Revenue Report
Internet
Olympics
PwC Australia
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