Mobile cracks 50 per cent of display advertising in latest IAB/PwC figures

Annual Online Advertising Expenditure Report for 2017 also shows rapid growth in video as online advertising continues to see double-digit growth

Mobile became the dominant form of digital display advertising for the first time in the 2017 financial year as digital continues to experience double-digit growth, the latest IAB/PwC figures claim.

The latest IAB/PricewaterhouseCoopers Online Advertising Expenditure Report for the 2017 financial reported yet another year of double-digit growth for the digital advertising market, with total revenues reaching $7.6 billion in the 12 months to 30 June 2017. The result was an 11.7 per cent year-on-year increase, and sees digital representing just shy of 50 per cent of total advertising spend in Australia, the consulting house claimed.

All forms of digital advertising, from general display to search and directories, classifieds, mobile and video, saw double-digit growth over the last year. Most notably, mobile advertising accounted for more than 50 per cent of the total general display market, and grew 32.7 per cent year-on-year to be worth $2.6bn in 2017.

Of this figure, 54 per cent was mobile display, with the remainder mobile search. Seventy per cent was on smartphones and 30 per cent on tablets.

“Digital is now a grown up and established advertising medium and the continued evolution of video and mobile advertising,” PwC editor of the Australian Entertainment and Media Outlook, Megan Brownlow, said.

One of the challenges with mobile advertising uptake has been reporting on it, Brownlow admitted. As a result, she suggested the industry had tended to “undercook” mobile in the past.

“What we’re seeing now is this combination of video viewing on mobile, which has significantly implications for the content makers,” she commented.


Video was clearly a strong performer, chalking up 49 per cent year-on-year growth and accounting for one-third of the total display market at $900 million, up from 24.3 per cent in 2016. Brownlow pointed out display had benefitted significantly from advertising coming to grips with how to use video online.

“Video in its own right is approaching a billion dollar business as more brands are realising the benefits of combining the persuasive brand building capabilities of video with the precision targeting that digital affords,” she said.  

This was particularly the case with retailers in the FMCG space, who recognised the opportunities of video not just to do performance-oriented work, but more strategic brand work for their businesses, Brownlow said.

“The real heavy lifting with awareness, launching new products – those are the categories that have really driven video uptake,” she added.

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

Conversations over a cuppa with CMO: The Star's George Hughes

It's been an incredibly tough three months for the Star as it shut its doors and stood down staff in response to the COVID-19 lockdown. Yet innovation has shone through, and if the CMO, George Hughes, has anything to say about it, such lateral thinking will continue as we start to recover from the crisis.

More Videos

One failing brand tying up with another failing brand!

Realist

Binge and The Iconic launch Inactivewear clothing line

Read more

I am 56 years old and was diagnosed with Parkinson's disease after four years of decreasing mobility to the point of having family dress ...

Nancy Tunick

The personal digital approach that's helping Vision RT ride out the crisis

Read more

I am 57 and diagnosed in June 2009. I had a very long list of symptoms, some of which were. Keeping right arm close to my side while walk...

Nancy Tunick

Gartner survey: CMO spending hit by COVID-19

Read more

Audible did such a great job on their marketing and at the same time, there are no false promises. The support, quality, variety all good...

Vitaliy Lano

Audible's brand plan to build the value of audiobooks

Read more

I am 56 years old and was diagnosed with Parkinson's disease after four years of decreasing mobility to the point of having family dress ...

Nancy Tunick

Parkinson's NSW creates a lorem ipsum generator and goes digital to mark Parkinson's Awareness month

Read more

Blog Posts

Business quiet? Now is the time to review your owned assets

For businesses and advertiser categories currently experiencing a slowdown in consumer activity, now is the optimal time to get started on projects that have been of high importance, but low urgency.

Olia Krivtchoun

CX discipline leader, Spark Foundry

Bottoms up: Lockdown lessons for an inverted marketing world

The effects of the coronavirus slammed the brakes on retail sales in pubs, clubs and restaurants. Fever-Tree’s Australia GM Andy Gaunt explains what they have learnt from some tricky months of trading

Andy Gaunt

General manager, Fever-Tree Australia and New Zealand

Younger demos thought lost are now found: But what about the missing money?

There is much talk about what VOZ will bring to the media industry. New ways to slice and dice audiences and segments. A clearer understanding of screen consumption. Even new ways to plan and buy. The most interesting result could be finding something many thought we lost - younger viewers, specifically the valuable 18-39s.

Michael Stanford

Head of 10 Imagine and national creative director, Network 10

Sign in