Mobile ad spend fuels growth in online expenditure

Mobile ad spend fuels growth in online expenditure

Online advertising expenditure jumped 15% year-on-year in this year’ first quarter, with mobile advertising fiercely driving the growth, a new report from the Interactive Advertising Bureau (IAB) has revealed.

According to the IAB Australia’s Online Advertising Expenditure Report, online advertising across smart phones and tablets recorded a whopping 183% growth in the three months to March, which almost tripled the total mobile market from $13m last year to $36.6m this year.

Total online advertising expenditure reached $ 910.8m for the March 2013 quarter.

Within mobile advertising, tablet based advertising has exceeded smart phone advertising share for the first time since the collection of mobile data, increasing to 58% of all mobile advertising – up from 41%  in the previous quarter.

Video advertising also recorded strong and sustained growth to reach $27.6m for the March 2013 quarter, an increase of $8.8m (or 46.8%) year-on-year.
The retail sector reported strong year on year growth of 42.7%t making it one of the biggest and fastest growing advertiser industry categories this year within display advertising. The traditionally dominant sectors in display advertising, motor vehicles and real estate, also gained share this quarter reflecting greater consumer activity in these industries during the start of the year
All three sectors grew year on year with general display and search and directories both up 17%, and classifieds advertising up by 8%.  On a quarterly basis, classifieds and search and directories achieved growth while general display advertising declined slightly, reflecting a seasonal trend which occurs in all March quarters. 
Gai Le Roy, director of research for IAB Australia said: "It is pleasing to see a strong March quarter with year on year growth for all major sectors. The dual factors continued growth in consumer devices and expansion of creative opportunities for marketers has underpinned significant growth in both mobile and video advertising. We expect to see this growth continue with publishers, agencies and advertisers currently investing heavily in resources to manage these growing sections.”
General display advertising accounted for 26% of all online advertising, classifieds advertising accounted for 19% and search and directories advertising accounted for 55% based on expenditure for the March quarter.  This equates to a total expenditure for each category during the March quarter of $497.15m for search and directories; $177.20m for classifieds; and $236.40m for display advertising.

The IAB’s research method saw data collected from industry participants supplemented by estimates for Google display, video and mobile advertising as well as Facebook display and mobile advertising.

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