The online advertising market in Australia grew 11.7% by $799 million to $7.6 billion between June 2016 to June 2017. That’s according to the latest findings from the Online Advertising Expenditure Report by PwC and the IAB Australia.
Megan Brownlow, Editor at PwC, said:
“Digital is now a grown up and established advertising medium and the continued evolution of video and mobile advertising. Video in its own right is approaching a billion dollar business as more brands are realising the benefits of combining the persuasive brand building capabilities of video with the precision targeting that digital affords.”
Search and Directories grew 12% from $3.1 billion in 2016 to $3.5 billion in 2017. Classified ads jumped 15% whilst general display ads grew 10%.
The report also highlights that automobile was the leading ad category for display formats (18.5%).
Much of the online ad expenditure was being driven by mobile, which represented more than 50% of display ad dollars. In addition, video advertising increased rapidly – up 49% to $0.9 billion. The format now makes up a third of the total display market.
Total mobile ad spending exceeded $2.6 billion during the period, representing a jump of almost 33% by $641 million compared to 2016. Mobile expenditure is predominantly made up of search (46%) and display (54%).
Meanwhile, video accounted for 32.9% of general display ad spend, up from 24.3% in 2016.
Vijay Solanki, CEO of IAB Australia, explains:
“During the last quarter alone, the IAB Video Council has published its inaugural connected TV white paper and the Video, Audio and Mobile Councils have published new Glossary of Terms to equip marketers with a common understanding of metrics and terms – with much more to come before the end of 2017.”