Online, mobile and video advertising continues to grow

Automotive brands dominate digital display advertising spend in Australia, accounting for 20.3% of the display market.

Total online advertising spend continues to grow, with 2017’s first quarter expenditure at $1.86 billion, up 7.2% year on year, according to research by the Interactive Advertising Bureau (IAB).

This represents a seasonal decline of 5.8% in fourth quarter expenditure, although classified increased by 7.1% compared to Q4 and had the strongest year on year growth of 15.9%. All categories grew year on year with search up 6% and display 4.5%.

Overall, auto is the category that dominates digital display advertising spend. It now accounts for 20.3% of the display market, with travel share up 6.4% compared to Q4 and consistent with a seasonally higher spend for this category in Q1 each year.

Auto has now been the number one display category for five years, demonstrating that automobile brands were quick to embrace and maintain their investment in digital.

“Digital advertising is a key component of our client’s overall advertising spend; it is measurable and actionable and their investment in the medium is increasing,” says Anthony Saines, IAB board member and managing director – commercial, at Carsales. “Digital is able to effectively drive personalised experiences across multiple platforms, from consideration through purchase. Brands are able to tailor their message to the appropriate audience which is driving exceptional results within the auto category.”

Mobile continues its exponential growth, with mobile expenditure at $653 million in Q1, up 29% year on year and a minimal seasonal dip of 1% compared to the previous quarter. Mobile continues to represent more than 50% of the display market (53.5%) – a significant increase from the 21.5% it represented just three years ago. This reflects consumption habits. In March, 63% of digital time was spent on smart phones in Australia, as well as the continuing maturity of mobile advertising campaigns.

Video also continues to increase its share of advertising expenditure. It now accounts for 36.3% of display, a significant 11% share increase from just three years ago when it accounted for just 25.3%. Within the video category, FMCG and retail account for 30% of total video spend and are the top two video advertiser categories. Interestingly, the real estate category which has a high general display spend (accounting for 12.1% of general display) has yet to fully embrace video which suggests considerable upside for future reporting quarters.

“The online advertising marketing continues to surpass historical year on year figures across all categories,” says Vijay Solanki, CEO of IAB Australia. “Significantly, mobile continues on its steep growth trajectory, further increasing its share of general display advertising both quarter on quarter and year on year. This speaks to both the ubiquity of smart phones within Australia and improved mobile advertising technology and creative as brands better understand the challenges and opportunities the platform offers. Our numbers also dovetail neatly with some of the headlines from this year’s Mary Meeker report, especially the global growth of mobile.”

 

Image copyright: racorn / 123RF Stock Photo

BY ON 5 June 2017
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