Australian online advertising expenditure reaches $1.88bn

Latest quarterly figures from IAB/PwC show digital video and mobile are gaining share

Digital video and mobile are continuing their ascent as preferred online advertising channels for Australian brands, chalking up 43.8 per cent and 56.6 per cent year-on-year growth respectively, IAB’s latest research has found.

According to the latest Interactive Advertising Bureau (IAB) Australia and PricewaterhouseCoopers Online Advertising Expenditure Report, total local online advertising spend reached $1.88 billion in the three months to 30 September, a 3.7 per cent gain quarter-on-quarter and a 20.3 per cent lift year-on-year.

IAB said its latest data was in line with the Commercial Economic Advisory of Australia report, which showed digital media representing more than 48 per cent of total Australian advertising expenditure for the first half of the 2016 financial year.

One of the more notable trends highlighted by the IAB in the latest quarterly report was the rise in video advertising expenditure, particularly from FMCG brands. The report found FMCG advertisers were responsible for 23.5 per cent of total video expenditure during Q3, and spent almost three times as much on video as general display advertising (8.2 per cent). Total expenditure on video during this period was $184m.

“The dominance of FMCG in video shows marketers are warming to the longer-term effects of cross device, and even cross-media campaigns that are underpinned by digital video,” commented IAB Australia CEO, Vijay Solanki.

“Marketers understand relationship building and its value and they are re-investing dollars where they can realise strong, measurable ROI and brand recall. The spend on digital video in these major industry categories speaks volumes in that regard.”

Solanki also noted that almost two-thirds of the market has now moved to screens, including out-of-home, proof of the dominance of screens in the way advertising is now consumed.

Mobile was another strong performer in the report, with a 5 per cent quarterly rise in spend to $570.7m, or 56.6 per cent increase year-on-year. Of those, smartphones made up 64 per cent of expenditure.

This doesn’t seem to have come at the cost of general display and search and directories, however, which both reported steady year-on-year gains of 20.3 per cent and 22.8 per cent, respectively.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, 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

Disruption Down Under – What’s Amazon’s real competitive advantage?

Savvy shoppers wait in anticipation, while Australian retailers are gearing up for the onslaught. Amazon’s arrival is imminent.

Change across the board: Why boards need to digitally evolve

Traditionally the non-executive board of a company acts in an advisory capacity - attending monthly board meetings to offer overarching advice and guidance typically focusing on:

Jodie Sangster

CEO, ADMA

The most desirable customers you’ve overlooked

“What will really move the needle?” This is a question that keeps leaders awake at night. And at the intersection of some of their top priorities – finding pockets of growth, redefining the customer experience, and making an emotional impact – lies a latent market: Their diverse customers.

Being aware of regulations or guidlines is just the start. As our CEO Emma Lo Russo stated exactly two weeks ago at an event we supported...

Alan Smith

​Are the Wild West days of influencer collaboration over?

Read more

Rebranding is always nice solution to get better organisation. Businessman may apply certain special services (for example, https://www.l...

David Hill

CMO interview: Spearheading the global rebranding of OFX

Read more

Thank you so much for sharing this article.Top Digital Marketing company in Bangalore

Way To DM

Predictions: 17 digital marketing trends for 2017

Read more

Thanks for the great article Jodie, agree many boards and senior execs are operating in outdated modes, just as we need some reverse soci...

sharyn

Change across the board: Why boards need to digitally evolve - Data-driven marketing - CMO Australia

Read more

I'm looking forward to Marketo moving toward providing these type of engagement metrics. The vision is there - what happens next to the p...

Emily Dick

Marketo CEO: Stop using outdated metrics, start basing marketing on engagement

Read more

Latest Podcast

More podcasts

Sign in