Tuesday, 12 March 2019 10:29

Australian online advertising grew to $8.8b in 2018

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Australian online advertising grew to $8.8b in 2018 Pixabay

Online advertising in Australia hit $8.8 billion in the calendar year 2018, an increase of 11.6% on the previous year, figures released by the Interactive Advertising Bureau on Tuesday show.

The IAB's Australia Online Advertising Expenditure Report, published by Price Waterhouse Coopers, said growth in digital advertising was an outcome of the shift to media consumption online.

It said Australians each now spent nearly 100 hours a month on desktop PCs, smartphones and tablets and about five million people used the Internet on their TVs each day.

General display advertising reached $3.3 billion for 2018, an increase of 15.8% on the previous year, which meant it accounted for 37% of the total online advertising.

Search and directories came in at $3.4 billion, an increase of 9.2% on 2017, while classifieds grew by 9.5% to reach $1.6 billion spend in 2018.

online ads 2018

According to a preliminary ACCC report on digital platforms issued last year, about 80% of this advertising spend goes to Google and Facebook.

For the final quarter of 2018, the general advertising category grew 5.4% to $2.3 billion, and new data points, captured for content publishers for the first time, showed that 51% of this was bought through media agencies using either an insertion order or another non-programmatic method.

Of the remainder, 34% of general display advertising was bought programmatically with either fixed CPM or guaranteed inventory (9%) or a variable CPM based on real-time bidding through an exchange or private market place (25%), while 9% of all display advertising was bought directly.

As far as mobile advertising went, it continued to drive strong growth in both the general display and search and directories, reaching $4.2 billion in 2018, a 34.9% increase year on year. Mobile advertising now makes up 63% of total general display advertising.

Video advertising grew 26.2% to reach $1.4 billion in 2018.

IAB Australia chief executive Gai Le Roy said: “Marketers continue to reinvest their budgets in a range of digital advertising options because they know it helps grow their businesses. [The year] 2019 will see the IAB demonstrate to marketers how they can increase the effectiveness of their spend across a wide range of digital formats and how it can work together efficiently with other media channel investments.”

Graphic: courtesy IAB

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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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