Australian advertisers spent $1,731 million on online advertising for the quarter ending March 2016, an increase of 33.5 per cent year on year, according to the latest IAB/PWC report.
As always the giant qualification is that the numbers are made up. Google and Facebook who capture the lion’s share of the revenue do not provide their data, so estimates are applied.
The IAB tends to be fairly … diplomatic … about the primacy of Google and Facebook, given the sensitivities of its other members. So before we get to the latest local data, here’s a few little factoids to consider as context.
- In the US, Morgan Stanley estimates that 85 per cent of all the new online advertising dollars went into the pockets of Google and Facebook (and remember Facebook is still under represented in the Australian market in terms of its revenue share.)
- Again in the US, mobile represents a clear majority of people’s digital time (and the trend is moving that way down under)
- Most of that mobile time is spent in apps, and mostly in the same few apps.
- For instance Australia there is a suggestion that the Facebook and Instagram combo captured a third of all local mobile minutes in Q1 (We are still seeking verification)
None of which augurs well for any publishers beyond the emerging Google/Facebook duopoly.
Back to the numbers
Still, let’s see what the IAB and PWC estimates sense of the Australian online advertising market suggests.
According to the report, mobile advertising is closing in on a majority of the general display advertising, while video advertising accounts for over 25 per cent of general display.
The study’s authors say that mobile advertising expenditure increased to $507.8 million in the March quarter 2016, with 57 percent of mobile ad expenditure attributed to mobile display and 43 percent to mobile Search.
“The total expenditure comprises general display and search, as well as mobile video advertising and is based on participants’ data, industry estimates for Google’s mobile display and search revenues, Twitter’s mobile display revenues and Facebook’s mobile display revenues,” according to an IAB release.
Not surprisingly the Quarter on quarter numbers where down following the peak Christmas season.
Year on year however, general display advertising demonstrated strong growth of 46.7 per cent for the March quarter, driven by mobile and video growth. Search and Directories advertising recorded an increase of 29.9 per cent year on year, while Classifieds grew 20.8 per cent year on year for the March quarter.
Video display advertising contributed 25.3 per cent of general display expenditure. The interesting point is that video has not improved its share much in the last 12 months in general display.
“FMCG continues to lead video advertising, with motor vehicles and retail rounding out the top three industry categories for video advertising and representing 46.5 percent of the report video display advertising market. Indeed FMCG is overly represented in video Display advertising compared to General Display, with a 25.5 percent share of spend in video Display, more than three times its 7.3 percent of share in total General Display.”
This article originally appeared on B&T’s sister business site www.which-50.com
Verizon Media’s talent program has come to an end for the third year, closing with a hybrid pitch-off event for Musicians Making A Difference (MMAD). The Verizon Media Academy class of 2021, made up of 44 emerging leaders from across Australia and New Zealand media, advertising and marketing industry, were given just one hour to […]
Social purpose organisation UnLtd’s Big Games competition has raised a combined $85,000 for children and young people at risk. Running over five weeks, the competition involved 32 teams from across the advertising, marketing and media industries battling it out virtually for a chance to qualify for the Rocket League final. The tournament culminated in a […]
Stan has announced that the Stan Original Film Transfusion commenced filming in Sydney earlier this week and will premiere on Stan in 2022. Transfusion is a taut, muscular thriller starring Sam Worthington (Avatar) as Ryan Logan, a former Special Forces operative, who is battling to cope with life after the loss of his wife and is thrust […]
According to a decade of data collected by iStock, Australian brands turned to imagery depicting outdated gender stereotypes during the pandemic. Tracking the keyword ‘women’, iStock by Getty Images found that in 2020, ANZ brands and businesses reverted to gender stereotypes. Images of mothers home-schooling were used at almost twice the rate of images of […]
Schwartz Media is congratulating Maddison Connaughton on her three years as editor of The Saturday Paper. Connaughton has decided to finish up her editorship this month. “It’s been an honour to edit the paper,” Connaughton said. “The Saturday Paper is one of the brightest voices in Australian media and I have been happy to see […]
Research from EdBbirdie using Spotify data has identified the most popular songs to study to. After analysing thousands of studying and homework playlists on Spotify, American singer Olivia Rodrigo’s ‘drivers license’ came out as top song to study to. It featured on 48 study playlists, while other top songs included ‘Ophelia’ by The Lumineers, ‘Falling’ […]
Dayna Stewart is the Business Director – Digital Marketing, Media & Creative Services at The Nudge Group. Here, she discusses the challenges that come with building a successful marketing team when working remotely. Before COVID-19 changed the way businesses work, most marketing teams spent their days together in a meeting room collaborating on the next […]
The line-up for the 2021 iHeartRadio Music Festival has been announced as the legendary event returns live in Las Vegas in September. This year, the epic two-day lineup for the iHeartRadio Music Festival main stage will feature performances by Billie Eilish, Cheap Trick, Coldplay, Dua Lipa, Florida Georgia Line, Journey, Khalid, Lil Baby, Maroon 5, Nelly, […]
Shop! ANZ is calling on shopper and retail marketing professionals from all retail related disciplines to participate in the first ANZ Shopper and Retail Marketing Industry Survey in four years. This important research provides a guide of where the retail marketing industry in Australia and New Zealand has come from and what is anticipated to […]