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

More Videos

fdgfd www.google.com

Caroline Natalia

How WW shifted physical engagement to virtual success in 5 days

Read more

I found decent information in your article. I am impressed with how nicely you described this subject, It is a gainful article for us. Th...

Daniel Hughes

What 1800 Flowers is doing to create a consistent customer communications experience

Read more

Extremely informative. One should definitely go through the blog in order to know different aspects of the Retail Business and retail Tec...

Sheetal Kamble

SAP retail chief: Why more retailers need to harness data differently

Read more

It's actually a nice and helpful piece of info. I am satisfied that you shared this helpful information with us. Please stay us informed ...

FIO Homes

How a brand facelift and content strategy turned real estate software, Rockend, around

Read more

I find this very strange. The Coles store i shop in still has Flouro lights? T though this would have been the 1st thing they would have ...

Brad

Coles launches new sustainability initiative

Read more

Blog Posts

9 lessons from 7 months of relentless failure

The most innovative organisations embrace failure. Why? Because it is often through failing the most creative out-of-box thinking happens. And with it comes vital learning opportunities that bring new knowledge and experience into teams.

Jacki James

Digital product lead, Starlight Children's Foundation

Why conflict can be good for your brand

Conflict is essentially a clash. When between two people, it’s just about always a clash of views or opinions. And when it comes to this type of conflict, more than the misaligned views themselves, what we typically hate the most is our physiological response.

Kathy Benson

Chief client officer, Ipsos

Brand storytelling lessons from Singapore’s iconic Fullerton hotel

In early 2020, I had the pleasure of staying at the newly opened Fullerton Hotel in Sydney. It was on this trip I first became aware of the Fullerton’s commitment to brand storytelling.

Gabrielle Dolan

Business storytelling leader

Sign in