Online advertising market cracks $6.8bn

Latest IAB/PwC report shows mobile and video are the fastest risers in Australia's digital advertising sector

Australia’s online advertising market has chalked up its fastest year-on-year growth in five years, reaching $6.8 billion for the 2016 financial year.

According to the latest IAB/PricewaterhouseCoopers Online Advertising Expenditure Report, strong growth in all online advertising segments helped bolster spend by $1.6 billion over the past year, pushing up total spending to $6.8bn for the 12 months to 30 June 2016. This represented a 29.7 per cent increase year-on-year and the fastest year-on-year growth in online advertising for five years.

Double-digit growth was recorded in all segments, including a 43.3 per cent increase in display, making up $2.5bn of the market spend. Classifieds also had 21 per cent growth to $1.2bn, while directories saw 24 per cent year-on-year growth to $3.1bn.

Mobile was the lead performer, with spend leaping 72 per cent to $1.9bn, while video grew 55 per cent to $600 million over the same period.

IAB CEO, Vijay Solanki, said the continued rise of mobile and video categories was helping push online advertising to close to half of all advertising spend. He noted real estate, automotive, retail and FMCG industry categories as leading the way in terms of digital. Real estate for example, saw the largest share growth over the past year, growing to 13.2 per cent.

“They have built capability across all digital platforms, especially in mobile and video,” Solanki said. “They know how to use content, technology and data to help achieve their marketing goals efficiently.”

According to the latest GroupM media spending forecasts, Australia’s total media spend is expected to be $14.6bn in 2016, up 2.4 per cent on 2015, with digital spend at $6.7bn, a rise of 11 per cent.


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

Latest Videos

More Videos

More Brand Posts

Blog Posts

Marketing prowess versus the enigma of the metaverse

Flash back to the classic film, Willy Wonka and the Chocolate Factory. Television-obsessed Mike insists on becoming the first person to be ‘sent by Wonkavision’, dematerialising on one end, pixel by pixel, and materialising in another space. His cinematic dreams are realised thanks to rash decisions as he is shrunken down to fit the digital universe, followed by a trip to the taffy puller to return to normal size.

Liz Miller

VP, Constellation Research

Why Excellent Leadership Begins with Vertical Growth

Why is it there is no shortage of leadership development materials, yet outstanding leadership is so rare? Despite having access to so many leadership principles, tools, systems and processes, why is it so hard to develop and improve as a leader?

Michael Bunting

Author, leadership expert

More than money talks in sports sponsorship

As a nation united by sport, brands are beginning to learn money alone won’t talk without aligned values and action. If recent events with major leagues and their players have shown us anything, it’s the next generation of athletes are standing by what they believe in – and they won’t let their values be superseded by money.

Simone Waugh

Managing Director, Publicis Queensland

Sign in