Australian online ad spending reaches over $1bn in one quarter: IAB

Latest Online Advertising Expenditure Report finds spending grew 25 per cent year on year

Online advertising expenditure exceeded $1bn in the September 2013 quarter for the first time, according to new figures from the Interactive Advertising Bureau (IAB). The category also recorded 25 per cent year on year growth since September 2012.

The Online Advertising Expenditure Report (OAER), produced for IAB by PricewaterhouseCoopers, found that display advertising recorded the largest increase with 41 per cent year on year growth reaching $295.6m in the September quarter.

Search and display had figures of $527.4m, while classifieds recorded $193.7m. According to the report, search and display now represents 52 per cent of the total Australian online advertising market, followed by general display (29 per cent) and classifieds (19 per cent).

Mobile advertising makes up 11 per cent of the market, with spending of $110.7m. Fifty-eight per cent of this was search and 41.6 per cent general display. Device category shares were almost equal with smartphones making up 51.4 per cent and tablets, 48.6 per cent.

Video advertising now represents 15 per cent of the total display advertising market with expenditure of $43.1m.

Email display advertising continues to trend downwards. Email advertising expenditure fell to a record quarterly low of $2.1m during the quarter, a drop of 52 per cent compared to the previous June quarter and 63 per cent year-on-year.

In August 2013, the IAB released figures that showed online advertising expenditure in the past year to 30 June rose 14.6 per cent to $3.6bn.

“This report and the recent CEASA data confirm that the overall health of the online advertising market is very robust,” said IAB Australia CEO, Alice Manners.

“We expect that by the end of this calendar year the online advertising sector will exceed 30 per cent of the total advertising market.”

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