Video, mobile show strong growth in IAB's Q1 online advertising report

Latest IAB report on online advertising expenditure in Australia shows digital advertising to be worth $1.15bn in the first three months of 2015

Video and mobile advertising both experienced double-digit growth in the first three months of the year as digital advertising spend reached $1.15bn, IAB’s latest report reveals.

According to the first 2015IAB Online Advertising Expenditure Report produced by PricewaterhouseCoopers, digital advertising spend reached $1.15 billion in the three months to 31 March 2015, a 5 per cent increase year-on-year.

Video advertising was the star of the show in Q1, chalking up 79 per cent year-on-year growth to $77 million. Mobile advertising also accelerated, leaping 13.5 per cent year-on-year to $230 million.

One in three general display dollars were spent on mobile display, while phone-based advertising lifted 20 per cent between Q1 2014 and Q1 2015, and tablet revenue grew 6 per cent over the same timeframe. As a whole, mobile advertising expenditure now makes up 20.1 per cent of total online advertising expenditure, up from 17.4 per cent last quarter.

According to IAB’s <i>Third Annual Mobile Landscape Study</i> released in April, mobile advertising is now well entrenched in the digital marketer’s budget, with 41 per cent of respondents using mobile as a core component in marketing campaigns.

In a sign of the growing dominance of online advertising, IAB’s report also pointed to the latest Commercial Economic Advisory Service of Australia (CEASA) Advertising Expenditure in Main Media report, which showed digital advertising spend representing 36 per cent of Australia’s $12.8bn advertising market in 2014. This was up from 31 per cent in 2013.

In contract, free-to-air advertising represented 27 per cent of total marketing spend, down 1 per cent; newspapers represented 16 per cent, down 3 per cent; and radio was 8 per cent.

IAB Australia’s CEO, Alice Manners, noted the strong video performance and expected further growth both locally as well as globally.

“The increase in video advertising expenditure is a reflection of the overall growing market understanding of the consumer’s desire to access content across a range of screens, all the time and at any time,” she said.

“The recent IAB NewFronts in New York saw a record number of major players unveil their new content offerings to an industry audience of unprecedented scale. It’s clear the industry is heavily investing in video content and we expect to see this continue to translate into ongoing growth in video here and in every other major market worldwide.”

The IAB’s new report also showed strong growth across general display advertising, which recorded its thirteenth consecutive year-on-year increase since 2002. General display accounted for 34 per cent of total online advertising spend and was worth $388m in the first quarter of the year. Top spenders on general display are motor vehicle, real estate and finance categories.

Search and directories remain the top category, with 44 per cent of the total online market worth $504m, while classified represented 22 per cent, an increase of 18 per cent year-on-year to $255m.

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

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