Display still king, according to the latest IAB/PricewaterhouseCoopers report
Video and mobile advertising increases have driven a 13.2 per cent year-on-year growth in digital advertising, according to the latest Australian Online Advertising Expenditure Report released by IAB/PwC.
This follows another report which found brands must transform the way they plan their communications across media and up the ante on mobile, as media consumption on mobile devices is set to rapidly rise by 2020.
The Online Advertising Expenditure Report found digital advertising revenue reached $2.1 billion for the first quarter of 2018, driven by significant growth in both video and mobile advertising. Video was up 38 per cent in Q12018 versus Q12017 to reach $320 million, representing 42 per cent of the entire display advertising segment for the quarter.
The reports also highlights a shift in advertising spend with marketers favouring general display advertising over both classifieds and search and directories.
General Display advertising recorded 20.3 per cent growth, classifieds increased 11.2 per cent, and Search recorded 8.8 per cent year on year growth. Both video and mobile advertising were up (38 percent and 39 percent respectively) each in Q1 2018 versus Q1 2017.
The data shows the Australian market more closely resembles the UK than either the US or NZ markets, with display advertising representing 36 per cent and 35 per cent of ad expenditure in Australia and the UK (respectively) compared to 50 per cent of ad spend in the US. Similarly, Australia’s share of video advertising as a proportion of total online advertising is 38 per cent, in line with the UK’s 39 per cent and significantly higher than both the US (29 per cent) and NZ (23 per cent).
IAB director of research, Gai Le Roy, said the report highlights the significant shifts in consumer behaviour towards mobile and video, so it’s little surprise to see an increased investment in these formats.
“While it’s likely we will see a continued softening in some of the more established digital ad revenue streams, we fully expect mobile and video advertising continue to surge as marketers explore and challenge the possibilities of digital to build trust and reputation for their brands.”
Other findings:
Now in its 11h year of revenue reporting for the digital industry, the IAB/PwC Online Advertising Expenditure Report provides data comparing international markets from a variety of IAB global reports on the distribution of dollars across digital revenue streams.
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