Australian online ad spending hits $3.6bn: IAB

Latest Online Advertising Expenditure Report finds mobile advertising has leapt 190 per cent in the last 12 months

Online advertising expenditure in Australia in the past year to 30 June has leapt 14.6 per cent to $3.6bn, according to the latest Interactive Advertising Bureau (IAB) figures.

The annual Online Advertising Expenditure Report, produced for the association by PricewaterhouseCoopers, found mobile continues to outpace other categories in terms of growth, increasing 190 per cent year-on-year. Search and directories advertising rose by 18 per cent over the same period, while general display was up by 12 per cent.

In its previous March quarter report, the IAB found tablet-based advertising was exceeding smartphone spending within the mobile category, representing 58 per cent of total spend. Over the most recent quarter to 30 June, mobile spend reached $45.9m and again 58 per cent was tablet-based.

One of the surprises over the first six months of the year was that total online advertising exceeded free-to-air television spending for the first time since the report began in 2002. According to the IAB, online expenditure was valued at $1.88bn against $1.8bn on television.

Over the April-June quarter, general display advertising accounted for 27.3 per cent of all online advertising ($265.6m), while classifieds advertising represented 18.9 per cent ($183.3m)and search and directories 53.8 per cent ($523m).

Video display advertising is also on the rise, and increased by 56 per cent year-on-year in the June quarter to $35.7m. In total, online advertising over the most recent quarter totalled $971.9m, up just over 15 per cent year-on-year.

“Achieving $3.6bn in online advertising revenue in a challenging advertising environment is a great result for the industry and the double-digit growth in each of the three digital advertising sectors is exceptional,” IAB director of research, Gai Le Roy, commented.

“As expected, mobile advertising was the star performer as advertisers move their budgets to start matching consumer behaviour. Video advertising growth continues to impress as marketers target the 13 million Australians streaming video content each month.”

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