Home Industry Market Online ads now worth more than TV

Online advertising expenditure in Australia reached $3.6 billion last financial year, up 14.6%. For the first time online advertising exceeds that on free to air TV.

The figures are contained in a report from IAB (Interactive Advertising Bureau), the peak trade association for online advertising in Australia. The Online Advertising Expenditure Report was compiled by PricewaterhouseCoopers. It shows double digital growth in all the categories it measured:

  • Mobile outpaced all other formats, achieving 190% growth year-on-year
  • Search and Directories grew 18% year-on-year
  • General Display grew 12%
  • Classifieds grew 10%.

Total online advertising expenditure for the six months ended 30 June 2013 was $1,883 million. This is the first time since the start of data collection in 2002 that online advertising revenue has exceeded advertising revenue for free to air television, which was $1,805 million for the six months ended 30 June 2013.

Internet advertising revenues in Australia totalled $972 million in the quarter ending 30 June 2013, an increase of 15.7% from the $840 million in June quarter 2012 and a 6.7% increase from $911 million in March quarter 2013. Mobile advertising revenues reached $46 million for the June quarter 2013, of which 58% was tablet based.

Video display advertising grew 56% year on year for the June quartermto $36 million. The auto sector showed it is rapidly embracing digital display, with motor vehicles the highest spending advertiser industry category in the quarter ending June 30 2013 at 19% share – an increase from 14.7% in the previous quarter.

Gai Le Roy, Director of Research for IAB Australia said: "Achieving $3.6 billion in online advertising revenue in a challenging advertising environment is a great result for the industry. The double digital growth in each sector is exceptional. As expected mobile advertising was the star performer as advertisers move their budgets to start matching consumer behaviour, and video advertising growth continues to impress as marketers target the 13 million Australians streaming video content each month.”

General display advertising accounted for 27.3% of all online advertising, classifieds advertising accounted for 18.9% and search and directories advertising accounted for 53.8% based on expenditure for the June quarter. This equates to a total expenditure for each category during the June quarter of $523 million for search and directories; $183 million for classifieds; and $266 million for display advertising.

“The report is the fifth to be prepared under the ‘new approach’ introduced in the June 2012 report,” said Le Roy. “This approach means data collected from industry participants has been supplemented by estimates for Google display, video and mobile advertising as well as Facebook display and mobile advertising; while the prior methodology for estimating Google search has been refined.”

Non IAB members can download an executive summary of the report at: www.iabaustralia.com.au

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Graeme Philipson

Graeme Philipson is senior associate editor at iTWire and editor of sister publication CommsWire. He is also founder and Research Director of Connection Research, a market research and analysis firm specialising in the convergence of sustainable, digital and environmental technologies. He has been in the high tech industry for more than 30 years, most of that time as a market researcher, analyst and journalist. He was founding editor of MIS magazine, and is a former editor of Computerworld Australia. He was a research director for Gartner Asia Pacific and research manager for the Yankee Group Australia. He was a long time IT columnist in The Age and The Sydney Morning Herald, and is a recipient of the Kester Award for lifetime achievement in IT journalism.

 

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