IAB: Online advertising expenditure cracks $5bn in 2015

Mobile and video display advertising growth propel general display advertising to new heights

Mobile and video display advertising have boosted general digital display results to their highest share of overall annual expenditure in 2015, the latest Interactive Advertising Bureau (IAB) figures reveal.

Australia’s online advertising market delivered record revenues for the full financial year to 30 June 2015, growing by 19.8 per cent to $5.3 billion, the latest IAB and PricewaterhouseCoopers Online Advertising Expenditure Report found.

Across the board, all online advertising segments chalked up double-digit growth during the financial year, with general display leading growth at 35 per cent.

Video advertising was a big growth area, rising by 98 per cent year-on-year to reach $389m over the 12-month period. According to the report, video now accounts for 16 per cent of all general display advertising expenditure, up from 14 per cent last year.

IAB also noted FMCG was overly represented in video display compared with general display with a 15 per cent share, nearly three times higher than its share in total general display.

Unsurprisingly, mobile advertising also increased 84 per cent to reach $1.1bn over the same period. This ensured digital became the dominant advertising category for mobile in the June quarter of 2015, IAB stated.

Across the mobile category, smartphone advertising increased its share of total mobile advertising to 66 per cent in 2015. Mobile display also represented 37 per cent of general display expenditure during the final quarter of the 2015 financial year, up from 22.5 per cent from the 2014 June quarter.

As a result of mobile and video, IAB said general display achieved its highest share of overall annual advertising expenditure at 33 per cent. In comparison, search and directories softened slightly to 48 per cent, and classifieds were steady on 19 per cent.

“Consistent year-on-year double-digit growth over the past decade is testament to the rewarding relationship marketers are building with consumers through interactive media and shows the vital role interactive advertising now plays in the marketing mix,” commented IAB Australia’s CEO, Alice Manners.

IAB also pointed to the latest CEASA data for the six months to 30 June 2015, which showed online advertising accounting for 41.3 per cent of total advertising revenue, up from 36 per cent in the previous report.

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