IAB: Mobile and video the growth engines behind online advertising rise

Latest Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers report shows video saw the largest leap in the first quarter of the year and represented 14.3 per cent of digital display dollars

Online advertising is continuing on its rapid growth trajectory, recording a 17.1 per cent year-on-year expenditure increase in the first quarter of the year, the Interactive Advertising Bureau (IAB) reports.

The association’s latest Online Advertising Expenditure Report with PricewaterhouseCoopers valued total online advertising at $1.067bn for the three months to 31 March 2014, with general display advertising chalking up the strongest growth over the quarter at 27.5 per cent. This was followed by search and directories, with a 16.8 per cent increase.

Mobile advertising put in a strong performance, representing 21.5 per cent of digital display revenue during Q1, and up from 19.5 per recent in the last quarter of 2013. Mobile also accounted for 17.1 per cent of search revenues, a rise of 1 per cent on the previous quarter. In total, mobile advertising made up 15.3 per cent of total online advertising expenditure, compared to 14.3 per cent in the last quarter.

But it was video advertising that saw the largest leap, rising 55.7 per cent year-on-year to represent 14.3 per cent of the digital display dollars during over the quarter.

On the flip side, email display advertising fell to a record low of 1 per cent during the quarter and was valued at $2.9 million.

Overall, the search and directories segment represented the biggest portion of the online advertising market at 54.4 per cent of total revenues, with $580.4 million in advertising expenditure over the quarter.

IAB CEO, Alice Manners, wasn’t surprised by the mobile and video figures, and anticipates continued growth for both platforms.

The association also pointed out the PwC data supports the recently released CEASA report, which attributes 30 per cent of all advertising spend in 2013 to digital channels.

In the IAB’s yearly report on online advertising released in February, it reported that online ad spend hit nearly $4 billion last year, compared with $3.9 billion on free-to-air TV.

“The March quarter is always slightly softer than the strong December quarter, however, it was pleasing to see strong year-on-year results,” added IAB director of research, Gai LeRoy. “Early indications are positive for the current quarter, particularly with a lot of activity in the video ad space.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Why 2017 will herald a resurgence of values-based marketing

It doesn’t take long for predictions to become predictable: The rise and rise of Facebook; advancements in analytics; the normalisation of chatbots; personalisation, programmatic, automation, authenticity… The prediction that’s missing from these lists is that in 2017 we will witness a resurgence of values-based marketing.

Jacqueline Burns

Founder, Market Expertise

Why customer experience driven growth is set to take off

Our overall brand perceptions are invariably shaped by our experiences. And loyal customer relationships can be severed in moments by a negative service interaction.

Consistency and conversation: How branding and advertising can work better together

Advertising and branding are two of the most visible outputs of marketing, which is why getting them right is so important. However, too often the line between branding and advertising becomes blurred. This means advertising activity can be out of sync with brand, resulting in poor results for both functions.

Dan Ratner

managing director, uberbrand

Someone needs a swift kick up the bum for such an idiotic idea.

random

​Why a degree is no longer enough to get you hired as a skilled marketer

Read more

The frequent flyer programs are the new profit machines for airlines all over the world, as they have morphed to be mass marketing machin...

Steve@iFLYflat

Velocity frequent flyers program strong performer in mixed half-year for Virgin

Read more

Hi Jennifer, thanks for sharing these info regarding the digital marketing trends.I've created a related video to this topic, would you m...

Fabio Carry

Predictions: 17 digital marketing trends for 2017

Read more

Great news. Marketing automation can be very useful for companies at various stages of development. With so many tools out there it's bet...

Ben

How HBF rolled out marketing automation in eight months

Read more

I read a report that the business sector in Australia as a whole have yet to fully harness and see the proactive change that predictive a...

Alex Martin

Report: Predictive analytics, IoT, machine learning battle it out for marketing dollars

Read more

Latest Podcast

More podcasts

Sign in