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

looking for the best quality of SMM Panel ( Social Media Marketing Panel ) is a website where People Buy Social Media Services Such as Fa...

Kavin kyzal

How to manage social media during Covid-19

Read more

Thank you for sharing your knowledge. Definitely bookmarked for future reading! Check this website https://a2designlab.com/ with lots of ...

Pierce Fabreverg

Study: Gen Z are huge opportunity for brands

Read more

Thanks for sharing. You might want to check this website https://lagimcardgame.com/. An up and coming strategic card game wherein the cha...

Pierce Fabreverg

Board games distributor partners with Deliveroo in business strategy pivot

Read more

Such an important campaign, dyslexia certainly need more awareness. Amazing to see the work Code Read is doing. On the same note we are a...

Hugo

New campaign aims to build understanding around scope and impact of dyslexia

Read more

Great Job on this article! It demonstrates how much creativity, strategy and effort actually goes to produce such unique logo and brandin...

Pierce Fabreverg

Does your brand need a personality review? - Brand vision - CMO Australia

Read more

Blog Posts

A few behavioural economics lesson to get your brand on top of the travel list

Understanding the core principles of Behavioural Economics will give players in the travel industry a major competitive advantage when restrictions lift and travellers begin to book again. And there are a few insights in here for the rest of the marketing community, too.

Dan Monheit

Co-founder, Hardhat

Predicting the Future: Marketing science or marketing myth?

Unicorns, the Sunken City of Atlantis, Zeus: They are very famous. So famous in fact, that we often think twice about whether they are real or not. Sometimes if we talk about something widely enough, and for long enough, even the strangest fiction can seem like fact. But ultimately it is still fiction - stories we make up and tell ourselves over and over until we believe.

Kathy Benson

Chief client officer, Ipsos

Winning means losing in the game of customer retention

At a time of uncertainty and economic hardship, customer retention takes on much greater importance. CX Lavender’s Linda O’Grady examines the big grey area between ‘all’ and ‘best’ customers when deciding who is worth fighting for and how.

Linda O'Grady

Data Strategy Partner & Business Partner, CX Lavender

Sign in