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 CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Is your content marketing missing the mark?

Does it ever seem like the content you create falls flat on its face or that the leads you’re generating aren’t worth following up?

Dan Ratner

managing director, uberbrand

​ Creating a purpose-driven brand

So you want to be a brand with purpose. But what does it actually mean to build a brand with real meaning?

Paul Chappell

Partner and managing director, Brand + Story

Customer experience crisis: Proactively mitigating the risk of broken promises

Last Friday, three weeks after United Airline’s spectacular customer experience disaster, customers received a letter from the company’s CEO, Oscar Munoz.

Very rarely have I come across views so true. There are so many gems in this article, reflective of reality, onec can read it again and a...

Shyam Mishra

ANZ digital chief: Tackle the ‘frozen middle’ of your organisation or face irrelevancy

Read more

STOP STEALING BUISNESS CLASS TOILETS from A380, new 787's and A330's!!!!Thats what you call customer experience ONE toilet for all Busine...

Joe

Qantas CMO: What it's taking to evolve our customer experience

Read more

Dare i suggest that a "CEO" role in a peak industry body like Think Brink is not really much of a leap from CMO because it is also a mark...

Sventana

CMO to CEO: Think Brick chief reveals what it takes to make the jump

Read more

Grate post, thanks for the post.No matter what your business is, if you do no not rank among the top most search results of Google, Yahoo...

Rahul

Image intelligence:10 must-see infographics for marketers

Read more

Thank you Shane Blandford for carrying my Smarketing vision into KM !

Peter Strohkorb

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

Read more

Latest Podcast

More podcasts

Sign in