Online advertising hits $4bn, mobile grows by 305%

Online advertising hits $4bn, mobile grows by 305%

Online advertising has hit the $4 billion mark, up 19.3% year on year and surpassing Free to Air (FTA) television advertising revenue for the first time, according to a PricewaterhouseCoopers study for the IAB.

Released today, the IAB Australia’s Online Advertising Expenditure Report saw an increase in revenue to $3.986bn year on year, where FTA television reached $3.877bn in the same period.

 “The industry should be very proud of these strong results, particularly given the 19.3 per cent growth rate is actually an increase on last year's,” Gai Le Roy, IAB Australia’s director of research, said.

“Digital advertising continues to evolve in terms of offerings and its ability to demonstrate strong ROI (return on investment) for marketers so we expect to see the growth rates sustained for some time to come."

The general display sector saw the biggest growth (up 28.4% to $1.125bn)  with motor vehicles, finance and retail being the top three most dominant in the General Display industry categories.

These sections represented 41.3% of the reported general display advertising market, up from 40.2% in the December quarter 2012.

Display advertising grew by 35% yoy with video advertising accounting for 15% of display’s revenues in the December quarter, a 72% growth on 2012.

Despite general display’s growth spurt search and directories is still the largest area after growing by 18.1% to hit $2.118bn in the 12 months ending December 31 2013.

Classifieds advertising grew by 10.5% to reach $743m last year.  Mobile advertising grew by a whopping 305% to reach $349.2m. The result shows mobile advertising quadrupled throughout 2013.

Retail increased its category share from 8.8% in the December quarter 2012 to 10.5% in the December quarter 2013, the strongest quarter for retail since the commencement of industry category data collection in 2008.

“As a committed shopper – online and offline – I'm thrilled to see Australian retailers more actively marketing through digital channels, as the growth in their share of online advertising shows,” Megan Brownlow, executive director at PricewaterCoopers Australia, said.

“The bar has been raised perhaps by the big international brand retailers that are seeing Australian consumers as attractive targets.” 

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