Increases share of total advertising market to 36 percent for 2014
The digital advertising market continues to grow with the latest IAB/PwC Online Advertising Expenditure Report (OAER) noting that it generated $1.15 billion during the March quarter, a five percent increase year on year. The video advertising market was the star performer for the March quarter, growing 79 percent year on year to reach $77 million.
The IAB/PwC OAER Report comes on the heels of the Commercial Economic Advisory Service of Australia (CEASA) Advertising Expenditure in Main Media report, which shows digital advertising snared 36 percent of the total $12.8 billion advertising market spend in Australia for calendar year 2014, up from 31 percent in 2013. By contrast, FTA achieved 27 percent of the total market.
“The increase in video advertising expenditure is a reflection of the overall growing market understanding of the consumer’s desire to access content across a range of screens, all the time and at any time,” said Alice Manners, CEO of IAB Australia. “The recent IAB NewFronts in New York saw a record number of major players unveil their new content offerings to an industry audience of unprecedented scale. It’s clear the industry is heavily investing in video content and we expect to see this continue to translate into ongoing growth in video here and in every other major market worldwide.”
Mobile advertising has continued its steady climb, with one in three General Display dollars being spent on mobile display advertising – an increase of 13.5 percent year over year for the quarter to reach $230 million. The OAER shows this growth has been driven by smartphones, with phone based advertising revenue increasing 20 percent year over year, while tablet revenue grew six percent in the same period. Overall mobile advertising expenditure now makes up 20 percent of total online advertising expenditure.
The General Display sector experienced a renaissance to reach its highest share since IAB Australia record keeping began in 2003, representing 34 percent of the total online advertising spend ($388 million) for the March quarter. Search and directories was again the top category of the quarter with its $504 million representing 44 percent of the total online market; and Classifieds captured 22 percent, an increase of 18 percent year on year to $255 million for the March quarter.
Of the General Display advertiser categories, auto advertisers remain the largest spending category with a 17.5 percent share. Real estate and FMCG advertisers continue to increase their share, now representing 11.2 percent and 8.6 percent respectively. Within the Classifieds category, real estate remains the largest, followed by the recruitment and automotive categories.
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About the Interactive Advertising Bureau
The Interactive Advertising Bureau (IAB) Limited is the peak trade association for online advertising in Australia and was incorporated in July 2010. As one of over 40 IAB offices globally, and with a rapidly growing membership, IAB Australia’s principal objective is to support and enable the media and marketing industry to ensure that they thrive in the digital economy.
IAB Australia’s board includes representatives of Carsales.com, Fairfax Media, Google, Mi9, Network, News Australia, REA Group, Telstra, TressCox Lawyers and Yahoo7. It has four objectives:
- To be the ‘big tent’ for the entire digital advertising industry and define the future of digital advertising
- To deliver the benefits of ad funded interactive experiences to Australians
- To develop, coordinate and promote industry standards and guidelines that make interactive advertising a simpler and more attractive medium for agencies, advertisers and marketers
- To prove and promote the effectiveness of interactive advertising to advertisers, agencies, marketers and the press
For further information about IAB Australia please visit: www.iabaustralia.com.au