Online overtakes TV for ad spending: IAB

Banner ads and other general display advertising show strongest growth

Spending on online advertising has beaten free-to-air TV for the first time in Australia, according to a PricewaterhouseCoopers report sponsored by the Interactive Advertising Bureau (IAB).

In 2013, online ad spending hit nearly $4 billion – growing 19.3 per cent from the previous year – while advertisers spent about $3.9 million on free-to-air TV, according to IAB Australia’s online advertising expenditure report for the quarter ended 31 December.

It’s a mammoth increase from ten years ago, when IAB’s 2003 report found that $236 million in ad dollars went to online.

Of the $4 billion spent on online ads in 2013, $2 billion was search and directories, $1.1 billion was general display advertising and $743 million was classifieds, the report said.

General display advertising – including website banner ads, emails and sponsorships – has seen the biggest growth, increasing 28.4 per cent from 2012, it said.

The IAB noted a growing use of video, with that type of ad accounting for 15 per cent of display revenue in the quarter ending 31 December – 72 per cent more than in the same quarter last year.

The top three categories of general display advertising in the quarter were motor vehicles, finance and retail, together representing 41.3 per cent of display ad market, the report said. That was up from 40.2 per cent in the same quarter in 2012.

Retail grew the most, increasing its share to 10.5 per cent in the December quarter from 8.8 per cent in the same quarter in 2012.

Also showing strong growth is mobile advertising, which quadrupled to $349.2 million in 2013. In the quarter, mobile represented 14.3 per cent of total online spending, up from 11 per cent in the previous quarter, the IAB report found.

“The industry should be very proud of these strong results, particularly given the 19.3 per cent growth rate is actually an increase on last year's,” IAB Australia director of research, Gai Le Roy, said in a statement.

“Digital advertising continues to evolve in terms of offerings and its ability to demonstrate strong ROI for marketers so we expect to see the growth rates sustained for some time to come."

The IAB report measures data reported directly to PwC by online ad selling companies representing 1000 websites.

Adam Bender covers digital marketing and wearable computing for CMO and is the author of a dystopian novel about surveillance. Follow him on Twitter: @WatchAdam

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

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

Join the newsletter!

Error: Please check your email address.
Show Comments

Blog Posts

How challenger brands can win at biddable media

Challenger brands, especially in highly competitive markets, generally can’t match established players for media spend.

Chris Pittham

Managing director, Jaywing

The competitive advantage Australian retailers have over Amazon

With all of the hype around Amazon, many online retailers have been trying to understand how they can compete with the American retail giant.

Joel Milligan

Performance manager, Columbus Agency

How to become the customer experience custodian

The number one objective enterprises give for embarking on a digital transformation is to improve customer experiences with new engagement models, according to IDC’s 2017 global study.

It's all about the experience and it seems that understanding is finally full tilt!

Danny Mack

Building a robust digital customer experience

Read more

I am going to visit Australia))) nice place ... one of the most attractive

Carly Julia

Tourism Australia aims for youth travel market with dedicated news channel

Read more

An interesting article that touches on the importance of a name, and introduces the concept of naming categories. However, it doesn't liv...

Adam Diggens

Brand creation: It’s just a name…or is it?

Read more

I'd like to see moving forward, how retail factors into SalesForce with the premise of IoT. Things such as customer behavioural analytics...

Rachel Mackey

Salesforce looks to democratise AI, IoT with latest platform play

Read more

More disgusting outdoor advertising signage. Sick of our public spaces being used like this.

Guest

Telstra looks to transform the payphone into a digital advertising and connected community unit

Read more

Latest Podcast

More podcasts

Sign in