Video advertising dominates latest IAB online expenditure report

General display advertising also sees a renaissance, while mobile is continuing in leaps and bounds

Video advertising grew 76 per cent to reach $196 million during the 2014 financial year, according to the latest Interactive Advertising Bureau (IAB) Online Advertising Expenditure Report.

The association found FMCG, retail and finance brands led the way in terms of video advertising usage in the year to 30 June, accounting for 43 per cent of all expenditure. FMCG represented 18.2 per cent of that expenditure, a figure more than 2.5 times higher than its 7.2 per cent share of general display advertising.

In contrast, FMCG, retail and finance accounted for 40 per cent of metro TV advertising.

Related: IAB shows online advertising overtakes TV ad spending for the first time

The IAB and PricewaterhouseCoopers report also found total online advertising expenditure for the 12 months reached $4.387 billion, 22 per cent higher than last year’s result. Search and directories was the largest part of the pie at 52 per cent, followed by general display (29.2 per cent) and classifieds (18.8 per cent).

The top three industry verticals using general display advertising were motor vehicles, finance and real estate, however retail was a big mover and increased its category share from 7.6 per cent to 9.1 per cent.

Display was the strongest performer, prompting IAB research director, Gai Le Roy, to declare the category was enjoying “a renaissance”.

“We expect this trend will continue strongly over the coming quarters,” she said.

Mobile advertising was also found to be growing strongly and reached $620m in the year to 30 June, making it now larger than the total magazine market, according to recent CEASA figures. Australia now also represents about 3 per cent of the global mobile advertising market.

In the past quarter, mobile increased by 16 per cent to $190m compared to the March quarter.

“The fusion of video advertising with mobile has been transformational for advertisers and publishers alike,” commented IAB Australia CEO, Alice Manners. “Mobile inventory has been somewhat undervalued, but the cross-platform opportunity that video advertising brings to it has unlocked considerable value and potential for both sectors.”

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
Error: Please check your email address.
Show Comments

Blog Posts

Why doing your job well is the key to innovation

The words ‘power company’ and ‘innovation’ probably don’t seem like a natural combination. In fact, when I first went for a marketing role with an electricity company, I semi-dreaded the work I thought I’d be doing.

Catherine Anderson

Head of marketing, Powershop Australia

The great unlearning: How brands can assist with the adoption of voice

Mainstream adoption of voice technology will be all about what consumers are learning not to do.

Ash Mustchin

Director, digital and experiences, Principals

Why getting intimate is key to creating a great customer experience

According to CMO’s State of the CMO 2017 research, 83 per cent of CMOs believe customer experience to be central to their role. An interesting stat considering few of us experience great brand experiences.

Pip Stocks

CEO and founder, BrandHook

'to lesson screen time'LOL someone needs a lesson on how to lessen typos.

Andrew Ward

Golden Circles invests in content play to drive brand purpose

Read more

Hey Nadia, interesting read. We have all read about what your chatbots should offer or have but haven't came across with anything about w...

Ashish K Jain

What not to do when building chatbots and voice-based brand interactions

Read more

There are some many other great solutions compared to the ones you listed here. Our clients left some of those and switched to MARA (getM...

Alexandru Rada

CMO's top 10 martech stories for the week - 9 June

Read more

Charming Shane. You know this is a public forum, right ?

Peter Strohkorb

​CMO Interview: Why aligning sales and marketing drives innovation at Konica Minolta

Read more

I agree customer intimacy is a great way of creating better customer experience. Especially in the Insurance and Financial industry. Her...

Jessicalopez1989

Why getting intimate is key to creating a great customer experience and optimising customer value

Read more

Latest Podcast

More podcasts

Sign in