Online advertising has continued to grow growth in Australia, exceeding AUD 1 billion in the September 2013 quarter. This implies a 25 per cent growth year on year from September 2012 and 4.6 percent on the prior quarter, according to IAB Australia’s Online Advertising Expenditure Report (OAER), which is produced by PricewaterhouseCoopers (PwC).
Display advertising was the biggest growth area according to the Report, recording 41 per cent growth year on year to reach AUD 295.6 million in the September 2013 quarter, while Classifieds recorded AUD 193.7 million and Search and Display AUD 527.4 million. Search and Display now represent 52 per cent of the total online advertising market, general display 29 percent and classifieds 19 per cent share.
Mobile advertising reported significant growth for the September quarter and now represents 11 per cent of the total online advertising market. Within the mobile advertising expenditure of AUD 110.7 million, 58.4 per cent was search and 41.6 per cent was general display. Device category shares were relatively equal with smart phones at 51.4 per cent and tablets at 48.6 per cent.
Video advertising expenditure doubled year on year, recording AUD 43.1 million for the September quarter and it now represents 15 per cent of the total display advertising market.
The IAB Report follows the recently released data from CEASA that noted in the January to June 2013 period, online advertising represented 28.6 per cent of the total advertising market.
Alice Manners, CEO of IAB Australia commented, “This report and the recent CEASA data confirm that the overall health of the online advertising market is very robust. We expect that by the end of this calendar year the online advertising sector will exceed 30 per cent of the total advertising market.”
“Digital is now an accepted and integral component of advertising and is being embraced by a broad range of advertisers. As advertising formats and approaches evolve and our ability to deliver full transparency and accountability continues to improve, there is no doubt that growth will continue and we expect that by the end of this year marketers will be spending around one third of their total budgets on digital advertising,” said Ms Manners.
“In September we released the results of our State of the Video Industry Report with Adap.tv which found that nine out of 10 agencies and marketers had increased their video ad spend over the past 12 months, while 60 percent of ad buyers were buying mobile video ads. Today’s PwC Report shows that mobile and video continues to captivate advertisers and we expect to see the growth in these sectors maintained for some time to come,” added Gai Le Roy, Director of Research for IAB Australia.
The Federal Election saw political parties embracing online advertising last quarter resulting in doubling in spend which saw the Government/Political sector responsible for six percent of display advertising. The auto sector remains the highest spending industry category for display advertising, while spending in the finance sector dropped slightly and real estate increased to almost 10 percent share – an increase of 8.8 percent on the same quarter in 2012 driven in part by the strong residential property market.
The Report was prepared under the ‘New Approach’ introduced in the June quarter 2012 OAER.
The data collected from industry participants has been supplemented by:
– Estimates for Google display, video, and mobile advertising as well as estimates for Facebook display and mobile advertising
– Refinement of prior methodology used for estimating Google search; and
– Historical mobile advertising data collected from industry participants from March Qtr 2011 combined with estimated Google mobile advertising, to provide a picture of the aggregated mobile advertising market and the growth trends