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.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

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

Using artificial intelligence to surprise your customers

​We have expected artificial intelligence (AI) will become part of our everyday lives for quite some time.

Katja Forbes

Founder and chief, sfyte

Is customer segmentation dead?

Ginni Rometty, the CEO of IBM, announced the death of customer segmentation five years ago saying, "The shift is to go from the segment to the individual. She might have been a bit premature for most marketers, but if customer segmentation isn't dead yet, it's definitely on life support.

Richard Taylor

Senior digital strategist, Spinach

How people buy brands

Andrew Ehrenberg was a giant in the field of marketing science. He believed scientific methods could reveal law-like patterns of how people buy. In this post, I summarise one of Ehrenberg’s most important discoveries and its implications on how people buy brands.

Kyle Ross

Strategist, TRP

What a great article. Thanks for sharing. Today Digital Marketing is the basic need for a business to survive. As online presence is very...

Ecomsolver Private Limited

Want to master digital transformation? Stop thinking about your own problems

Read more

Feeling grateful that customer led digital transformation could improve business and generate more business growth. Many companies are no...

Lilly Lawrence

How a customer-led digital transformation has helped this CMO generate $6m in incremental business

Read more

If a business games me happy than there is a higher chance I will go to them.

Martinez

The Iconic: becoming customer-focussed transformed our business

Read more

That’s a great example of surprising AR ad that went viral because it was first of its kind. Probably a similar effect to some scale can ...

Natasha Kvitka

Using artificial intelligence to surprise your customers

Read more

Hey there! it is a really meaningful post. I too have written a few similar articles about SEM, SEO, Social Media, Digital Marketing Tren...

Rohit

Digital advertising continues to dominate marketing budgets

Read more

Latest Podcast

More podcasts

Sign in