​TV adspend drops as mobile leads the way

Mobile ads surges as digital disrupts traditional adspend, a new report found

Traditional free-to-air TV spend is dropping as digital advertising spending continues to climb, according to a new report by the Commercial Economic Advisory Service of Australia (CEASA).

The report revealed TV spend dropped from 24 per cent to 21.6 per cent of total ad spend in 2016, while digital reached 48.6 per cent of all advertising spend for calendar year 2016, up from 42.5 per cent in 2015.

The CEASA report, which captured ad revenue from all major paid media channels, using authorised data sources from industry bodies including ThinkTV, Outdoor Media Association, IAB Australia and Commercial Radio Australia; as well as data from all agency groups, showed mobile adspend is continuing to grow, reflecting the shift in consumer and audience behaviour.

Mobile advertising, a subset of the digital advertising spend, increased to 15 per cent of the whole paid media market in 2016, up from 11 per cent in 2015; while digital video also continued to grow, representing 5 per cent of the total ad spend in 2016, up from 3 per cent in 2015.

“The latest consumer data shows that over 20 million Aussies are online and 15 million are on their mobiles,” IAB Australias CEO, Vijay Solanki, said. “As consumer penetration increases and immersion deepens, it’s inevitable that smart marketers would want to follow. All the data suggests that deepening consumer immersion into mobile and video will continue to drive revenue.”

IAB Australia’s research director, Gai Le Roy stressed as the stakes increase it is important that marketers and advertisers rely on independent data from organisations such as the CEASA for media planning decisions rather than from incomplete sources.

“To understand the whole media market we must have data on direct advertiser spend and not just selected agency data,” Le Roy said. “Without this we are missing almost all SME advertising spend as well as that of the larger advertisers that are taking more of their buying and planning in-house.”


This year, mobile advertising continues to remain in the media spotlight, with New Zealand-based ad tech startup, Postr, announcing in January it raised $3 million to spur deployment of its telecom whitelabel mobile app across Australia and South East Asian markets, providing a solution that allows telcos to serve up ads to consumers on locked mobile screen in return for extra mobile data or airtime.

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

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