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

5 things marketers need to do to get better in buy in when presenting

Presentations are a marketer’s best friend. They can be a concise, targeted and effective form of communication with the potential to make a real impact on your audience.

Emma Bannister

Founder and CEO, Presentation Studio

How to overcome negative habitual thinking

One of the greatest challenges facing senior leaders today is what’s going on in their own head.

Lisa Stephenson

Author, success coach, consultant

The purpose of purpose

Everyone knows the 4 P’s of marketing: Price, product, promotion and place. There is now a fifth ‘P’ in the marketing mix.

Thanks Nadia for sharing this blog. It has really useful and amazing information about Salesforce Commerce Cloud and digital engagement w...

Holly Smith

Adidas taps data and technology smarts to build personalised digital engagement with consumers

Read more

clearly someone who's jealous and only comments from the safety of being behind their keyboard

Peter Sibson

The purpose of purpose - Brand science - CMO Australia

Read more

haters gonna hate

David Bentley

The purpose of purpose - Brand science - CMO Australia

Read more

Social Media is platform where people get connected to each other from the world and share their views and thoughts on any product. Socia...

Tejas Potfode

6 Ways to ramp up Social Media to Your Web Design

Read more

We can't overlook mobile. Each passing day people are on their phones more and more

This Is My South Bay

What the 5G revolution will do to mobile marketing

Read more

Latest Podcast

More podcasts

Sign in