Classifieds, general display show strong growth in latest IAB online advertising report

Classified advertising's percentage of total digital advertising spend in Australia proves substantially higher than in the US or UK

Australia’s classified advertising spend has jumped 22.8 per cent year-on-year and now represents a substantially higher percentage of digital expenditure here than in other countries, the IAB’s latest online advertising report claims.

According to the Interactive Advertising Bureau Australia’s Online Advertising Expenditure Report for the three months to 30 September 2014, classified advertising was worth $238 million in Q3, up 4.4 per cent on Q2 and 22.8 per cent year-on-year. This represented 20 per cent of total digital expenditure over the quarter.

In comparison, classified advertising made up 14 per cent of the UK’s total digital advertising spend, and 6 per cent in the US.

IAB CEO, Alice Manners, saw this as a positive story for Australia’s digital advertising industry. “Australia is certainly reaping the benefits from industry innovations in this sector and strong market players including REA and Carsales are delivering world-leading results in their verticals,” she commented.

“It’s clear that marketers continue to have great confidence in the online advertising market.” In total, online advertising expenditure for the quarter reached $1.2 billion, representing 16 per cent year-on-year growth. All types of advertising experienced year-on-year growth, with search up 10 per cent and general display continuing its renaissance, rising by 22 per cent to 31 per cent marketshare. This was the highest result for general display since 2006.

With retail advertisers making up 10 per cent of general display spend, the IAB said the growth signalled a willingness to continue their investments in digital.

Search and directories expenditure accounted for 49 per cent of online advertising for the quarter, or $580 million.

Mobile advertising was again a stellar performer, growing 85 per cent year-on-year to reach 17.4 per cent of the online advertising market. Of this, 55 per cent was attributed to search, and 45 per cent on general display.

Video advertising also grew, albeit on a slower growth trajectory of 1.4 per cent quarter by quarter, or 41.8 per cent year-on-year. Video now accounts for 17 per cent of general display advertising expenditure.

FMCG advertisers were the single biggest investors in online video advertising in Q3, representing 15 per cent of total video revenue, the IAB said. However, auto advertisers weren’t far behind and increased their video spend to 12.7 per cent.

The IAB Online Advertising Expenditure Report was produced by PricewaterhouseCoopers.

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

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

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

More Brand Posts

What are Chris Riddell's qualifications to talk about technology? What are the awards that Chris Riddell has won? I cannot seem to find ...

Tareq

Digital disruption isn’t disruption anymore: Why it’s time to refocus your business

Read more

Enterprisetalk

Mark

CMO's top 10 martech stories for the week - 9 June

Read more

Great e-commerce article!

Vadim Frost

CMO’s State of CX Leadership 2022 report finds the CX striving to align to business outcomes

Read more

Are you searching something related to Lottery and Lottery App then Agnito Technologies can be a help for you Agnito comes out as a true ...

jackson13

The Lottery Office CEO details journey into next-gen cross-channel campaign orchestration

Read more

Thorough testing and quality assurance are required for a bug-free Lottery Platform. I'm looking forward to dependability.

Ella Hall

The Lottery Office CEO details journey into next-gen cross-channel campaign orchestration

Read more

Blog Posts

Marketing prowess versus the enigma of the metaverse

Flash back to the classic film, Willy Wonka and the Chocolate Factory. Television-obsessed Mike insists on becoming the first person to be ‘sent by Wonkavision’, dematerialising on one end, pixel by pixel, and materialising in another space. His cinematic dreams are realised thanks to rash decisions as he is shrunken down to fit the digital universe, followed by a trip to the taffy puller to return to normal size.

Liz Miller

VP, Constellation Research

Why Excellent Leadership Begins with Vertical Growth

Why is it there is no shortage of leadership development materials, yet outstanding leadership is so rare? Despite having access to so many leadership principles, tools, systems and processes, why is it so hard to develop and improve as a leader?

Michael Bunting

Author, leadership expert

More than money talks in sports sponsorship

As a nation united by sport, brands are beginning to learn money alone won’t talk without aligned values and action. If recent events with major leagues and their players have shown us anything, it’s the next generation of athletes are standing by what they believe in – and they won’t let their values be superseded by money.

Simone Waugh

Managing Director, Publicis Queensland

Sign in