Online advertising has exceeded AU$1 billion in the September 2013 quarter while recording 25% growth year on year from September 2012  and 4.6% on the prior quarter according to IAB Australia’s Online Advertising Expenditure Report (OAER) produced by PricewaterhouseCoopers (PwC).

According to the report, display advertising was the biggest growth area, recording 41% growth year on year to reach $295.6m in the September 2013 quarter, while Classifieds recorded $193.7m and Search and Display $527.4m.  Search and Display now represent 52%of the total online advertising market, general display 29%; and classifieds 19% share.

Alice Manners, CEO of IAB Australia said in a statement: “This report and the recent CEASA data confirm that the overall health of the online advertising market is very robust.  We expect that by the end of this calendar year the online advertising sector will exceed 30%t of the total advertising market.

“Digital is now an accepted and integral component of advertising and is being embraced by a broad range of advertisers. As advertising formats and approaches evolve and our ability to deliver full transparency and accountability continues to improve, there is no doubt that growth will continue and we expect that by the end of this year marketers will be spending around one third of their total budgets on digital advertising,” says Manners.

Mobile advertising reported significant growth for the September quarter and now represents 11% of the total online advertising market.  Within the mobile advertising expenditure of $110.7m, 58.4% was search and 41.6% was general display. Device category shares were relatively equal with smart phones at 51.4% and tablets at 48.6%.

Video advertising expenditure doubled year on year, recording $43.1m for the September quarter and it now represents 15% of the total display advertising market.

Gai Le Roy, director of research for IAB Australia says, “In September we released the results of our State of the Video Industry Report with Adap.tv which found that nine out of 10 agencies and marketers had increased their video ad spend over the past 12 months, while 60%of ad buyers were buying mobile video ads.  Today’s PwC Report shows that mobile and video continues to captivate advertisers and we expect to see the growth in these sectors maintained for some time to come.”