- Online ad expenditure surpassed free-to-air TV advertising revenue, for the calendar year, for the first time since the start of data collection in 2002
- All online advertising segments experienced double digital growth; General Display advertising sector had the strongest growth at 28.4 percent
- Mobile advertising quadrupled in 2013, increasing 305 percent year on year to reach AUD 349.2 million
- Video advertising reached 15 percent of display revenues in the December quarter, a 72 percent growth on 2012
- Motor Vehicles, Finance and Retail were the top three dominant general display industry categories
Australia has gained its place as one of the most advanced digital advertising industry. The size of the business too is now reflecting this trait. Online advertising expenditure surpassed Free to Air TV advertising revenue for the calendar year for the first time since the start of data collection in 2002, according to IAB Australia’s Online Advertising Expenditure Report which is done in partnership with PricewaterhouseCoopers. Online advertising expenditure grew 19.3 percent year on year to reach a total of AUD 3.986 million. By comparison FTA TV reached AUD 3.877 million in the same period.
While all online advertising segments experienced double digital growth in the 12 months ended December 31, 2013, the General Display advertising sector had the strongest growth at 28.4 percent year on year to break the AUD 1 billion barrier for the first time. By comparison, Search and Directories grew 18.1 percent and Classifieds grew 10.5 percent year on year.
General display advertising expenditure for 2013 was AUD 1.125 million, while Classifieds advertising was AUD 743 million and Search and Directories reached AUD 2.118 million.
Mobile advertising’s big boom
Mobile advertising quadrupled in 2013, increasing 305 percent year on year to reach AUD 349.2 million in the twelve months ending December 31, 2013. In the December quarter it represented 14.3 percent of total online expenditure, up from 11 percent in the previous quarter. Video advertising reached 15 percent of display revenues in the December quarter, a 72 percent growth on 2012. Display advertising also experienced growth in the December quarter, reaching 35 percent year on year growth.
“The industry should be very proud of these strong results, particularly given the 19.3 per cent growth rate is actually an increase on last year’s. Digital advertising continues to evolve in terms of offerings and its ability to demonstrate strong ROI for marketers so we expect to see the growth rates sustained for some time to come,” commented Gai Le Roy, IAB Australia’s Director of Research.
Category wise growth
Motor Vehicles, Finance and Retail were the top three dominant general display industry categories in the December quarter, representing 41.3 percent of the reported General Display advertising market. This was up from 40.2 percent in the December quarter 2012.
Retail was a big mover, increasing its category share from 8.8 per cent in the December Quarter 2012 to 10.5 per cent in the December quarter 2013. This has been the strongest quarter for retail category share since the commencement of industry category data collection in 2008. The strength of the retail industry category for General Display advertising this quarter was also reflected in the greater retail movements in the market. Shoppers spent a record AUD 22.6 billion in December 2013, following strong sales in October and November.
“As a committed shopper – online and offline – I’m thrilled to see Australian retailers more actively marketing through digital channels, as the growth in their share of online advertising shows. The bar has been raised perhaps by the big international brand retailers that are seeing Australian consumers as attractive targets,” said Megan Brownlow, Executive Director at PwC Australia.