Aussie Online Ads Up 33.5% (As Google & Facebook Snare The Lion’s Share)

Aussie Online Ads Up 33.5% (As Google & Facebook Snare The Lion’s Share)
SHARE
THIS



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.

IAB chart may 26

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 stalls

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

Please login with linkedin to comment

Advertising Standards Bureau creative directors Online ads PRIA

Latest News

Bangkok Thailand - August 31 2017 Facebook App on iPhone with computer laptop background closeup male hand hold social network on smart device concept.
  • Media
  • Opinion

Young Australians Will Abandon Facebook If It Doesn’t Do More To Combat Hate Speech

In this guest post, founders of The Daily Aus Sam Koslowski and Zara Seidler discuss why in order to stay in the game and keep its user, social media giant Facebook needs to do more to combat hate speech… For young Australians, Facebook is on the decline. Unless the platform better responds to its user’s […]

Opinion

by B&T Magazine

B&T Magazine
Baskin-Robbins Australia Awarded For Stranger Things Campaign
  • Media

Baskin-Robbins Australia Awarded For Stranger Things Campaign

A brave move has paid dividends for Baskin-Robbins Australia who recently announced they won the award for Best Digital Initiative at last week’s QSR Media Awards. Baskin-Robbins Australia’s Master Licensee, Palm Oasis Ventures took a risk in launching a digital winter campaign targeting a new millennial and Gen Z demographic when it partnered with Netflix to launch season 3 of the streaming giant’s most popular show, the sci-fi horror series, Stranger Things.

TikTok Turns On Trump (Again)
  • Media

TikTok Turns On Trump (Again)

TikTok has turned on Trump once again. As yet, no one brave enough to speculate it's the work of the Chinese government.

SAN FRANCISCO, CA JULY 1, 2018: Entrance to Adobe San Francisco office location in historic Baker and Hamilton warehouse
  • Media

Convert Digital Awarded Adobe’s Magento Gold Status

Leading eCommerce website development agency, Convert Digital, has achieved the coveted Magento Gold Status from Adobe. This accomplishment has been reached following the agency’s continuing work with the Magento 2 platform - platform that is incredibly robust and offers unrivalled flexibility and scalability.

Influencers Raise $95k For Starlight Children’s Foundation In Do-Good Campaign Via Born Bred Talent
  • Campaigns

Influencers Raise $95k For Starlight Children’s Foundation In Do-Good Campaign Via Born Bred Talent

Influencer marketing agency Born Bred Talent has partnered with the Starlight Children’s Foundation to mobilise their talent roster and support the Stream Raiser campaign, contributing over $95k in donations thanks to virtual fundraising efforts.  With a combined reach of 6.2 million across Instagram, TikTok and Twitch, 9 Australian influencers contributed 76% of the $124k raised […]

UNICEF Set To Launch ClickforCovid Relief Gaming Stream
  • Advertising

UNICEF Set To Launch ClickforCovid Relief Gaming Stream

In 2020, the ‘new wave’ of youth consumers have inspired the world with their activism and fundraising, so eGEN is proud to have partnered with UNICEF, Loserfruit and friends to help gamers fight COVID and help the world’s most vulnerable children. The world’s most famous strawberry will be joined by her Click crew for a […]

Silverbullet Achieves Adobe Audience Manager Specialisation
  • Media

Silverbullet Achieves Adobe Audience Manager Specialisation

Silverbullet Data Services Group (Silverbullet), has become one of only four businesses globally to achieve Adobe Specialisation in EMEA for Adobe Audience Manager. Adobe Specialised Partners are acknowledged as the most skilled technical practitioners throughout the global partner ecosystem. Specialisations are earned after organisations achieve a level of certified expertise in an Adobe solution and […]

Businesswoman hand connecting jigsaw puzzle, Business solutions, success and strategy concept
  • Technology

General Mills Partners With Zyper To Build Virtual Superfan Communities

Food company General Mills has partnered with Zyper, a marketing platform that connects brands with their superfans, to build virtual fan communities for General Mills’ brands. As part of the agreement, General Mills will use Zyper’s software to initially identify the Betty Crocker and Fibre One brands’ top one per cent of fans on social […]

Facebook Pledges $500,000 To Group Admins Across Australia
  • Technology

Facebook Pledges $500,000 To Group Admins Across Australia

Facebook is continuing its Facebook Australia Groups Impact Fund, today announcing $500,000 in funding for the program. The grant was originally designated for bushfire recovery groups, however, has now been extended to local communities across the country who might be facing hardship. Facebook said it is on the lookout for groups that have a positive […]