IAB: Mobile and video the growth engines behind online advertising rise

Latest Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers report shows video saw the largest leap in the first quarter of the year and represented 14.3 per cent of digital display dollars

Online advertising is continuing on its rapid growth trajectory, recording a 17.1 per cent year-on-year expenditure increase in the first quarter of the year, the Interactive Advertising Bureau (IAB) reports.

The association’s latest Online Advertising Expenditure Report with PricewaterhouseCoopers valued total online advertising at $1.067bn for the three months to 31 March 2014, with general display advertising chalking up the strongest growth over the quarter at 27.5 per cent. This was followed by search and directories, with a 16.8 per cent increase.

Mobile advertising put in a strong performance, representing 21.5 per cent of digital display revenue during Q1, and up from 19.5 per recent in the last quarter of 2013. Mobile also accounted for 17.1 per cent of search revenues, a rise of 1 per cent on the previous quarter. In total, mobile advertising made up 15.3 per cent of total online advertising expenditure, compared to 14.3 per cent in the last quarter.

But it was video advertising that saw the largest leap, rising 55.7 per cent year-on-year to represent 14.3 per cent of the digital display dollars during over the quarter.

On the flip side, email display advertising fell to a record low of 1 per cent during the quarter and was valued at $2.9 million.

Overall, the search and directories segment represented the biggest portion of the online advertising market at 54.4 per cent of total revenues, with $580.4 million in advertising expenditure over the quarter.

IAB CEO, Alice Manners, wasn’t surprised by the mobile and video figures, and anticipates continued growth for both platforms.

The association also pointed out the PwC data supports the recently released CEASA report, which attributes 30 per cent of all advertising spend in 2013 to digital channels.

In the IAB’s yearly report on online advertising released in February, it reported that online ad spend hit nearly $4 billion last year, compared with $3.9 billion on free-to-air TV.

“The March quarter is always slightly softer than the strong December quarter, however, it was pleasing to see strong year-on-year results,” added IAB director of research, Gai LeRoy. “Early indications are positive for the current quarter, particularly with a lot of activity in the video ad space.”

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

Blog Posts

Searching for social and marketing data

Many marketers, agencies - and everyone in between - get caught up on bubble references and data points. They’ll use Facebook best practice as the only best practice for Facebook executions and only consider metrics and responses of the one channel they’re expected to deliver on.

Isaac Lai

Connections strategy lead, VMLY&R Sydney

Why Australia needs more leaders

A few weeks ago, our Prime Minister, Scott Morrison took it upon himself to tell companies and their CEOs where to go when it came to societal issues. It wasn’t an organisation’s place to get involved. Instead, he said it should be left to governments to solve societies challenges.

Dan Banyard

Managing director, Edentify

3 skills you need to drive better collaboration

A study published in The Harvard Business Review found the time spent in collaborative activities at work has increased by over 50 per cent in the past two decades. Larger projects; complicated problems; tighter timeframes: These require bigger teams with specialised skillsets and diverse backgrounds, often dispersed globally.

Jen Jackson

CEO, Everyday Massive

Informative blog. Xero is a well-known revolutionized accounting software, specifically developed to provide best User Experience and mak...

NavkarConsultancyServices

Xero evolves to fit a changing marketplace

Read more

>Writes article about how to show diversity in an authentic way>All featured opinions are from white women

Jennifer Metcalfe

Food for Thought: How can brands show diversity in an authentic way?

Read more

Excellent post, congratulations !!! - Prof Paulo Coelho | https://www.drpaulocoelho.c...

Prof Paulo Coelho

The B2C and B2B marketing transformation helping Invisalign win more smiles

Read more

Great article - but regarding "For a team to achieve their full potential, Edmonson also advises leaders balance psychological safety wi...

Sim

3 skills you need to drive better collaboration - Business leadership - CMO Australia

Read more

I would invest money in machine learning. I think it's important to do that. Don't you agree?

Polly Valentine

Metcash to use AI for promotional planning optimisation in liquor division

Read more

Latest Podcast

More podcasts

Sign in