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 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