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!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Great read. I agree that it should be a perfect balance between interacting with your customers and knowing your brand. As a business, yo...

Caroline Scott

7 ways CMOs can improve their customer engagement game

Read more

Very true. Team development helps improve collaboration among the team members. I was able to improve my team's collaboration skills by t...

Quent Sinder

Why empowering others can help make you a great leader

Read more

CRM is a very good software that can help you succeed in your business. In my company, this system has allowed me to improve customer rel...

Anna Janicka

Sensis rebrands to Thryv and brings business software to Australian SMBs

Read more

AI Leasing Assistants have finally arrived for the multifamily industry. With so many to choose from it can be hard to figure out which i...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Blog Posts

Why if marketing is all you do, you’ll never be very good at it

OK, so you’re probably thinking: “Here comes another article to badger me about living in my bubble.” And also, “I bet this bubble-bashing piece will go on to explain how I can achieve better results through some heady dose of new life experiences, new routines and annoyingly different opinions on social media.”

Dane Smith

Behavioural science lead and regional consulting partner, Ogilvy

A leader’s role in rebuilding a culture of confidence

Every day, there are new predictions and studies on the future of work, the state of the economy and the unfolding global pandemic. All of which creates uncertainty and heightens the imperative of effective leadership.

Michelle Gibbings

Workplace expert, author

Confused About Your Customers?​

​I've worked in brand and marketing for more than 20 years. But there’s one area where I’ve found myself going around in circles and I must admit I'm becoming increasingly confused.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in