IAB: Car Ads Continue To Lead Digital Display Advertising In Australia

IAB: Car Ads Continue To Lead Digital Display Advertising In Australia
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Total online advertising spend continues to grow, with first quarter expenditure at $1.86 billion, up 7.2 per cent year on year according to the latest data by the IAB.

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

Overall, auto is the category that dominates digital display advertising spend. It now accounts for 20.3 per cent of the display market, with travel share up 6.4 per cent 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,” said 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 per cent year on year and a minimal seasonal dip of 1 per cent compared to the previous quarter. Mobile continues to represent more than 50 per cent of the display market (53.5 per cent); a significant increase from the 21.5 per cent it represented just three years ago. This reflects consumption habits; in March 63 per cent 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 per cent of display, a significant 11 per cent share increase from just three years ago when it accounted for just 25.3 percent. Within the video category FMCG and retail account for 30 per cent 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 per cent 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,” said 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.”

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