Video advertising dominates latest IAB online expenditure report

General display advertising also sees a renaissance, while mobile is continuing in leaps and bounds

Video advertising grew 76 per cent to reach $196 million during the 2014 financial year, according to the latest Interactive Advertising Bureau (IAB) Online Advertising Expenditure Report.

The association found FMCG, retail and finance brands led the way in terms of video advertising usage in the year to 30 June, accounting for 43 per cent of all expenditure. FMCG represented 18.2 per cent of that expenditure, a figure more than 2.5 times higher than its 7.2 per cent share of general display advertising.

In contrast, FMCG, retail and finance accounted for 40 per cent of metro TV advertising.

Related: IAB shows online advertising overtakes TV ad spending for the first time

The IAB and PricewaterhouseCoopers report also found total online advertising expenditure for the 12 months reached $4.387 billion, 22 per cent higher than last year’s result. Search and directories was the largest part of the pie at 52 per cent, followed by general display (29.2 per cent) and classifieds (18.8 per cent).

The top three industry verticals using general display advertising were motor vehicles, finance and real estate, however retail was a big mover and increased its category share from 7.6 per cent to 9.1 per cent.

Display was the strongest performer, prompting IAB research director, Gai Le Roy, to declare the category was enjoying “a renaissance”.

“We expect this trend will continue strongly over the coming quarters,” she said.

Mobile advertising was also found to be growing strongly and reached $620m in the year to 30 June, making it now larger than the total magazine market, according to recent CEASA figures. Australia now also represents about 3 per cent of the global mobile advertising market.

In the past quarter, mobile increased by 16 per cent to $190m compared to the March quarter.

“The fusion of video advertising with mobile has been transformational for advertisers and publishers alike,” commented IAB Australia CEO, Alice Manners. “Mobile inventory has been somewhat undervalued, but the cross-platform opportunity that video advertising brings to it has unlocked considerable value and potential for both sectors.”

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

Top tips to uncovering consumer insights for business innovation

An in-depth understanding of consumers sits at the heart of what we all need to do, but we know it’s not always easy to uncover insights that will unlock a true innovation opportunity.

Matt Whale

Managing director, How To Impact

Is your customer experience program suffering bright shiny object syndrome?

You may have heard of ‘bright shiny object syndrome’. The term is used to describe new initiatives undertaken by organisations that either lack a strategic approach, or suffer from a failure to effectively implement.

Leveraging technology to stand out in the sea of sameness

The technology I'm talking about here is data and marketing automation. Current digital marketing methodology, much as it is practiced at Bluewolf, dictates the need for a strategy that does four things: Finds the right audience, uses the right channel, delivers the right content, and does all of that at the right time.

Eric Berridge

CEO and co-founder of Bluewolf, an IBM Company

Lead Management is very important part of the process. For anyone running Facebook Lead Ads I would recommend using this service.Get your...

Dirk Lo

How this fintech startup is improving content marketing and lead generation

Read more

I am agreeing with Mr. Tyron Hayes that a measured test-and-learn approach could be missing opportunities to not only better engage custo...

rush essay reviews

CMO interview: How Curtin University’s marketing chief is using test and learn to cope with complexity

Read more

Excellent!

Dr Sadasivan,US

Shakespeare shows data and creativity aren’t Montagues and Capulets

Read more

Great article! Agreed with all... Matthew Lerner, Deeps De Silva... When a company has a great product that solves customers needs, a gre...

James Tyler

Why marketers are embracing growth hacking techniques

Read more

Very good article, Social media analytics helps in problem identification. They can serve as an early warning system for negative custome...

BizVinu

Four ways to use social media to boost customer loyalty

Read more

Latest Podcast

More podcasts

Sign in