Latest IAB, SMI figures paint different picture on where ad spend is heading

IAB's latest online advertising expenditure report indicates softening growth, while SMI shows a broader advertising market returning to pre-pandemic normal

The digital advertising industry may have chalked up a 22 per cent year-on-year increase in spend to $13.9 billion this past financial year, but latest figures are showing signs of softening growth.

According to the latest IAB Australia Online Advertising Expenditure Report produced by PwC, total annual spend to 30 June 2022 reached $13.9 billion, fuelled by the Federal Election as well as summer and winter Olympics. The report showed all categories experiencing double-digital growth year-on-year, with video advertising once again increasing its share of general display advertising to 58 per cent. Overall, video spend was worth $3.1bn, up 30.8 per cent on FY21.

Classified investments were up 30.1 per cent to $2.4bn, gaining one percentage point in share to 17 per cent off the back of a surge in recruitment advertising. By comparison, search and directories decreased 1 per cent to $6.068bn, but still managed to record double-digit growth for the second consecutive year.

Mobile advertising also rose as mobility returned across Australia, growing 15.6 per cent year-on-year to $7.1bn. Programmatic advertising was stable at 70 per cent, with a shift towards guaranteed deals noted by PwC.

However, IAB and PwC said the OAER results highlight more modest growth of 10.6 per cent in the June quarter, reflecting market changes and a recalibration of activity. Total online advertising was worth $3.6bn in the three months to 30 June 2022.

“Although revenue for the Australian digital advertising market in the June quarter was softer than the previous three quarters, growth was still robust at 10.6 per cent,” IAB Australia CEO, Gai Le Roy, commented. “There were strong results across the market for the financial year, with growth of 22% versus 2021, buoyed by investment for the Olympics, Federal Election, and an incredibly strong bounce back for classified listings.”

As well as continued growth over the last quarter, general display gained 3 per cent more spend thanks to rising video advertising investments. Retail was once more the largest sector spending, with automotive, finance and FMCG advertising remaining consistent. The IAB noted entertainment also entered the top five industry categories.

Yet while the latest Standard Media Index (SMI) figures also showed a decline of 4.2 per cent in advertising spend in July, the agency attributed this to the inflated boost provided by the Tokyo Olympics last year. Excluding Olympic broadcasts, SMI said overall advertising demand grew 2.8 per cent in July, or $27.9 million.

SMI A/NZ managing director, Jane Ractliffe, said underlying growth seen in July had given Australia’s ad market 30 consecutive months of year-on-year growth.

“At least within the advertising market, we’re not yet seeing any significant signs of nervousness in the current economic environment,” she said. “This is an especially solid result as for the first time in three years, we’ve seen the first signs that government category ad spend – which has powered a lot of the market’s growth – is starting to normalise from the Covid era with the value of its bookings back 35 per cent this month. But other categories have stepped up to fill the void and as a result we’re seeing good growth on an underlying basis.”

According to SMI figures, July was a bumper month for the out-of-home media industry, which chalked up a growth rate of 28.8 per cent – the highest for any media. In total, OOH delivered total ad spend 2.5 per cent higher than its pre-pandemic result of July 2019.

By contrast, SMI figures showed total digital advertising growing just 0.1 per cent, which it attributed to lower video sites/streaming ad spend. Despite this, the figures echoed PwC’s by showing the value of video-based campaigns across the market continues to grow. Video was $2 million below that of the online display ad market in July.

SMI found the government category delivering the largest decline of any category in July, affecting all major media. It’s a different story for travel, with bookings more than doubling year-on-year.

Across the January to July period, SMI said the market remains well in record ad spend territory with the value of the ad market up 8.6 per cent on the same period last year.

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!


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



CMO's top 10 martech stories for the week - 9 June

Read more

Great e-commerce article!

Vadim Frost

CMO’s State of CX Leadership 2022 report finds the CX striving to align to business outcomes

Read more

Are you searching something related to Lottery and Lottery App then Agnito Technologies can be a help for you Agnito comes out as a true ...


The Lottery Office CEO details journey into next-gen cross-channel campaign orchestration

Read more

Thorough testing and quality assurance are required for a bug-free Lottery Platform. I'm looking forward to dependability.

Ella Hall

The Lottery Office CEO details journey into next-gen cross-channel campaign orchestration

Read more

Great Sharing thoughts.It is really helps to define marketing strategies. After all good digital marketing plan leads to brand awareness...

Paul F

Driving digital marketing effectiveness

Read more

Blog Posts

Marketing prowess versus the enigma of the metaverse

Flash back to the classic film, Willy Wonka and the Chocolate Factory. Television-obsessed Mike insists on becoming the first person to be ‘sent by Wonkavision’, dematerialising on one end, pixel by pixel, and materialising in another space. His cinematic dreams are realised thanks to rash decisions as he is shrunken down to fit the digital universe, followed by a trip to the taffy puller to return to normal size.

Liz Miller

VP, Constellation Research

Why Excellent Leadership Begins with Vertical Growth

Why is it there is no shortage of leadership development materials, yet outstanding leadership is so rare? Despite having access to so many leadership principles, tools, systems and processes, why is it so hard to develop and improve as a leader?

Michael Bunting

Author, leadership expert

More than money talks in sports sponsorship

As a nation united by sport, brands are beginning to learn money alone won’t talk without aligned values and action. If recent events with major leagues and their players have shown us anything, it’s the next generation of athletes are standing by what they believe in – and they won’t let their values be superseded by money.

Simone Waugh

Managing Director, Publicis Queensland

Sign in