Over $1b spent in online advertising for Q1: IAB report

IAB reports 5% growth in digital advertising, video star performer growing 79%

The digital advertising market continues to grow with the latest IAB/PwC Online Advertising Expenditure Report (OAER) finding that it generated $1.15 billion during the March quarter, a 5% increase year on year. The video advertising market was the star performer for the March quarter, growing 79% year on year to reach $77 million.

The Report comes on the heels of the Commercial Economic Advisory Service of Australia Advertising Expenditure in Main Media report, which shows digital advertising snared 36% of the total $12.8 billion advertising market spend in Australia for calendar year 2014, up from 31%  in 2013. By contrast, FTA achieved 27% 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% year over year, while tablet revenue grew six percent in the same period. Overall mobile advertising expenditure now makes up 20% 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% 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% of the total online market; and Classifieds captured 22%, an increase of 18% 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% share. Real estate and FMCG advertisers continue to increase their share, now representing 11.2% and 8.6% respectively.  Within the Classifieds category, real estate remains the largest, followed by the recruitment and automotive categories.

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