Australian online advertising expenditure reaches $1.88bn

Latest quarterly figures from IAB/PwC show digital video and mobile are gaining share

Digital video and mobile are continuing their ascent as preferred online advertising channels for Australian brands, chalking up 43.8 per cent and 56.6 per cent year-on-year growth respectively, IAB’s latest research has found.

According to the latest Interactive Advertising Bureau (IAB) Australia and PricewaterhouseCoopers Online Advertising Expenditure Report, total local online advertising spend reached $1.88 billion in the three months to 30 September, a 3.7 per cent gain quarter-on-quarter and a 20.3 per cent lift year-on-year.

IAB said its latest data was in line with the Commercial Economic Advisory of Australia report, which showed digital media representing more than 48 per cent of total Australian advertising expenditure for the first half of the 2016 financial year.

One of the more notable trends highlighted by the IAB in the latest quarterly report was the rise in video advertising expenditure, particularly from FMCG brands. The report found FMCG advertisers were responsible for 23.5 per cent of total video expenditure during Q3, and spent almost three times as much on video as general display advertising (8.2 per cent). Total expenditure on video during this period was $184m.

“The dominance of FMCG in video shows marketers are warming to the longer-term effects of cross device, and even cross-media campaigns that are underpinned by digital video,” commented IAB Australia CEO, Vijay Solanki.

“Marketers understand relationship building and its value and they are re-investing dollars where they can realise strong, measurable ROI and brand recall. The spend on digital video in these major industry categories speaks volumes in that regard.”

Solanki also noted that almost two-thirds of the market has now moved to screens, including out-of-home, proof of the dominance of screens in the way advertising is now consumed.

Mobile was another strong performer in the report, with a 5 per cent quarterly rise in spend to $570.7m, or 56.6 per cent increase year-on-year. Of those, smartphones made up 64 per cent of expenditure.

This doesn’t seem to have come at the cost of general display and search and directories, however, which both reported steady year-on-year gains of 20.3 per cent and 22.8 per cent, respectively.

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

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Hi,When online retailers establish their multi channel strategy and they are using or will to use live chatbot to support their customers...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Thanks for nice information regarding Account-based Marketing. PRO IT MELBOURNE is best SEO Agency in Melbourne have a team of profession...

PRO IT MELBOURNE

Cultivating engaging content in Account-based Marketing (ABM)

Read more

The best part: optimizing your site for SEO enables you to generate high traffic, and hence free B2B lead generation. This is done throug...

Sergiu Alexei

The top 6 content challenges facing B2B firms

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Check out tiny twig for comfy and soft organic baby clothes.

Morgan mendoza

Binge and The Iconic launch Inactivewear clothing line

Read more

Blog Posts

Getting privacy right in a first-party data world

With continued advances in marketing technology, data privacy continues to play catchup in terms of regulation, safety and use. The laws that do exist are open to interpretation and potential misuse and that has led to consumer mistrust and increasing calls for a stronger regulatory framework to protect personal information.

Furqan Wasif

Head of biddable media, Tug

​Beyond greenwashing: Why brands need to get their house in order first

Environmental, Social and (Corporate) Governance is a hot topic for brands right now. But before you start thinking about doing good, Craig Flanders says you best sort out the basics.

Craig Flanders

CEO, Spinach

​The value of collaboration: how to keep it together

Through the ages, from the fields to the factories to the office towers and now to our kitchen tables, collaboration has played a pivotal role in how we live and work. Together. We find partners, live as families, socialise in groups and work as teams. Ultimately, we rely on these collaborative structures to survive and thrive.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in