Online advertising spend grows 20% YOY

FMCG brands leading the way using digital video to deliver brand uplift

Duane Storey

• FMCG brands leading the way using digital video to deliver brand uplift
• Data from IAB PwC Online Advertising Expenditure Report shows screens are king

On the day that FTA broadcasters are asking advertisers to “ReThinkTV”, the online industry has released its latest growth figures and reported on the growth of digital video spend.

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Highlights from the IAB release:

Total online advertising spend continues to grow, reaching just over $1.88 billion for the three months ending September 30 2016 according to the latest PwC/IAB Online Advertising Expenditure Report. The industry growth represents a 3.7% gain on last quarter and a 20.3% gain over Q3 2015.

The PwC/IAB report shows that FMCG advertisers are continuing to shift their attention to digital video responsible for 23.5% of total video expenditure and spending almost three times as much on video as General Display advertising (8.2%). This shift in spend has been validated by Nielsen in its recent Pathmatics Q3 data, which reported Kimberly Clark, Unilever and Proctor & Gamble as the top FMCG advertisers in the digital video market.

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“The dominance of FMCG in video shows marketers are warming to the longer term effects of cross-device, and even cross-media campaigns that are underpinned by digital video,” said IAB CEO Vijay Solanki.  “Marketers understand relationship building and its value and they are reinvesting dollars where they can realise strong, measurable ROI and brand recall. The spend on digital video in these major industry categories speaks volumes in that regard.

“Screens deliver video and personalised, optimised experiences,” said Solanki. “We’ve seen almost two-thirds of the market going to screens, with digital also strengthening the outdoor ad industry. Digital video can drive brand uplift in a targeted, immersive and measurable way. It can put the right creative on steroids.”

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The PwC/IAB report showed that all digital advertising categories experienced strong growth in the quarter against the comparative 2015 quarter, with Classifieds up 13.4%, Search and Directories showing a 22.8% increase and General Display increasing 21%.

Expenditure on mobile advertising grew to reach $570.7 million in the September quarter, a 5% increase on last quarter and a 56.6% jump compared to Q3 2015. Smartphones continue to attract a majority of the mobile dollars, making up 64% of the total mobile expenditure.

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