IAB/PwC: Digital advertising continues double-digit growth trajectory

Q1 2021 figures show digital advertising spend up more than 25 per cent year-on-year as sectors such as travel and automotive start to recover and retail soars

Australia’s digital advertising market has continued its double-digit growth trajectory, recording a 25.8 per cent increase in the first quarter of 2021 compared to a year ago.

In a sign of the further recovery of the advertising trade, the latest Interactive Advertising Bureau (IAB) Australia and PwC Online Advertising Expenditure Report shows total digital advertising spend hit $2.883 billion for the three months to 31 March 2021, up from $2.291 billion for the same quarter in 2020.

This comes after a robust Q4, 2020, which saw total digital advertising spend reach $2.9 billion.

Retail advertising was found to be a particularly strong performer across the quarter, up 16.4 per cent year-on-year. According to the report, while retail advertising has held a record share of display advertising investment for the last two quarters, it continues to grow and accounted for 16.4 per cent of total display investment. Retail also led video advertising spend overall. 

Finance as a category was also up 9.3 per cent year-on-year, and increased real estate spend also saw the sector join the top five industries in Q1, 2021. By contrast, automotive advertising was down 12.5 per cent year-on-year and technology was down 2.4 per cent.  

Against this, the IAB/PwC noted advertising in the travel sector has begun its recovery thanks to the boom in domestic tourism, with both travel and automotive advertising slightly up in comparison to the latter half of 2020.

All categories of digital advertising reported double-digit growth in Q1, 2021, with search and directories lifting 26.5 per cent, general display increasing by 28.9 per cent and classifieds rising by 28.5 per cent.

Video proved a stellar growth channel once more, growing 32 per cent year-on-year. Within general display, video represented the lion’s share at 54 per cent growth compared followed by infeed/native (31 per cent) and standard display (14 per cent).

However, total video advertising expenditure fell slightly to $572 million in the March quarter following record spend of $645m in the December 2020 quarter. The report also noted programmatic trading of video inventory increased in the March quarter, peaking at 61 per cent of total expenditure versus 34 per cent bought through agencies.

“Digital advertising continues apace and we’re seeing a diversification of that spend into a broader range of opportunities across different digital offerings,” commented IAB Australia CEO, Gai Le Roy. “There’s no doubt the Australian market is bouncing back but there’s still plenty of room for further growth, with expectations that as borders reopen and supply chains improve, both the travel and automotive categories will increase investment in digital advertising.”

Don’t miss out on the wealth of insight and content provided by CMO A/NZ and sign up to our weekly CMO Digest newsletters and information services here. 

You can also follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page

 



 

 

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

More Brand Posts

What a great help! You can also use apps like Connecteam to establish great leadership. Not only that your management of employees would ...

Kimberly Wise

Why kindness is the make or break for modern leadership

Read more

As an ex employee of 4 years during the growth of the company, I can say that the new management has benefitted the company tremendously,...

Harry

How JobAdder's CMO is bringing the human truth to B2B rebranding

Read more

So many words, so little business benefit.

Brett Iredale

How JobAdder's CMO is bringing the human truth to B2B rebranding

Read more

This article highlights Gartner’s latest digital experience platforms report and how they are influencing content operations ecosystems. ...

vikram Roy

Gartner 2022 Digital Experience Platforms reveals leading vendor players

Read more

Ms Bennett joined in 2017 yet this article states she waited until late 2020 to initiate a project to update the website. The solution t...

Munstar Cook

How Super SA put customers at the heart of its digital transformation

Read more

Blog Posts

The real cost of doing customer service badly

Headlines of unacceptable waiting times to get onto Qantas will have many brand owners, chief executives and boards thinking, ‘thank goodness that is not us’. But Qantas isn’t the only company being inundated with calls with no reprieve in sight, it’s just dominating headlines right now.

Kath Blackham

CEO, Versa

The 15 most-common persuasion mistakes

As workers across the country slowly head back to the office, many of us might have forgotten how to deal with one another in person and the best way to persuade someone in a working environment.

Michelle Bowden

Author, consultant

5 commonly missed opportunities when marketing to multicultural customers

The latest census data shows Australia has become a majority migrant nation for the first time. According to the new national data, more than 50 per cent of residents were born overseas or have a migrant parent.

Mark Saba

Founder and CEO, Lexigo

Sign in