General Display Advertising Steals Back Marketers’ Hearts

General Display Advertising Steals Back Marketers’ Hearts
SHARE
THIS



Digital advertising revenue reached $2.1 billion for the first quarter of 2018, driven by significant growth in both video and mobile advertising, according to the IAB and PwC’s Online Advertising Expenditure Report.

The report also highlights a shift in advertising spend with marketers favouring general display advertising over both classifieds and search and directories.

While the overall digital advertising revenue increased 13 per cent year on year, general display advertising recorded 20.3 per cent growth in the same period.

Classifieds increased 11.2 per cent year and search recorded 8.8 per cent year-on-year growth.

Both video and mobile advertising were up 38 per cent and 39 per cent respectively in Q1 of 2018 versus the prior corresponding period in 2017, with video reaching $320 million for the quarter, representing 42 per cent of the total general display advertising category.

Total revenues for Q1 were down 3.5 per cent versus the December 2017 quarter, reflecting a standard seasonal trend where the March quarter tends to be softer following the Christmas period.

Gai Le Roy, director of research at the IAB, said: “Our market is chameleon-like, mirroring the significant shifts in consumer behaviour towards mobile and video, so it’s little surprise to see an increased investment in these formats.

“While it’s likely we will see a continued softening in some of the more established digital ad revenue streams, we fully expect mobile and video advertising continue to surge as marketers explore and challenge the possibilities of digital to build trust and reputation for their brands.”

The data shows that the Australian market more closely resembles the UK than either the US or New Zealand markets, with display advertising representing 36 per cent and 35 per cent of ad expenditure in Australia and the UK respectively, compared to 50 per cent of ad spend in the US.

Similarly, Australia’s share of video advertising as a proportion of total online advertising is 38 per cent, in line with the UK’s 39 per cent and significantly higher than both the US (29 per cent) and NZ (23 per cent).
According to the Q1 report, auto advertisers continue to be the largest investors in digital display advertising at 18.3 per cent share of spend.

However, the FMCG industry is increasing its spend and is now the largest advertiser category for video advertising at 12.2 per cent.

Overall, the range of industries investing in video has diversified over the last 12 months, with industries including finance (10.8 per cent) and telecommunications (8.7 per cent) increasing their video spends.

The top five spenders in video who make up a combined 47.4 per cent of the total market include FMCG, finance, telecommunications, retail, and automotive.
The latest report shows search and directories continues to represent the largest proportion of the online advertising market in Australia at 45 per cent ($937 million) for the March quarter, with general display at 36 per cent ($767 million) and classifieds at 19 per cent ($397 million).

Mobile advertising expenditure decreased in the March quarter to $909.1 million after record growth in the December 2017 quarter during the Christmas retail period.

Fifty-six per cent of mobile advertising expenditure is attributed to mobile search and 44 percent to mobile display.

Smartphones continue to attract a greater share of advertising expenditure at 90 per cent, compared to tablets’ 10 per cent share, increasing its share from the prior December quarter (80 per cent and 20 per cent respectively).

Independent research company CEASA confirmed in March 2018 that digital represented 50.7 per cent share of the total advertising market expenditure of $15.6 billion for the 2017 calendar year.

Please login with linkedin to comment

general display advertising IAB Online Advertising Expenditure Report pwc

Latest News

Coopers Release New & Limited Edition Hazy IPA Via TABOO
  • Campaigns

Coopers Release New & Limited Edition Hazy IPA Via TABOO

Looking to entice a more progressive audience into the Coopers family, Australia’s largest independent brewery has released a limited edition Hazy IPA. The product has launched via a national OOH and digital campaign in collaboration with Melbourne creative agency, TABOO. TABOO is behind the exciting new illustrative can design, inspired by the Australian landscape. The […]

Ben & Jerry Goes Political In ‘Unfudge Our Future’ Campaign
  • Campaigns

Ben & Jerry Goes Political In ‘Unfudge Our Future’ Campaign

Ben & Jerry’s has unveiled their latest limited-edition flavour: Unfudge our Future, to urge Australia’s leaders to tackle climate change by making fossil fuels history. The launch aligns with the Federal Government’s preparation of a history-making economic reboot in the upcoming October Budget, with Ben & Jerry’s joining forces with 350.org Australia and the Climate […]

Celeste Barber Encourages Aussies To ‘Get Your Jugs Out’ In Hilarious BRITA Campaign
  • Campaigns

Celeste Barber Encourages Aussies To ‘Get Your Jugs Out’ In Hilarious BRITA Campaign

BRITA Australia is today proud to reveal its latest national campaign, ‘Get Your Jugs Out’, starring Australian comedian, Celeste Barber. The quirky campaign encourages Australians to make the switch from bottled water to great tasting filtered tap water, using a BRITA filter jug at home, with the creative brought to life with Celeste’s cheeky, yet relatable sense of humour.

Enero Posts Net Revenue Increase Of 4.9%
  • Media

Enero Posts Net Revenue Increase Of 4.9%

Forget 2020's plagues, pestilence and famine says Enero, as balance sheet comes out with sweet smell of potpourri.

by B&T Magazine

B&T Magazine
You Can Now Limit Who Can Reply To You On Twitter
  • Technology

You Can Now Limit Who Can Reply To You On Twitter

Twitter is saying ‘bye to the reply guys’, allowing users to control who can reply to their Tweets. ‘Reply guys’ have long been an issue on the social media app, where users (often anonymous) frequently comment on posts in an annoying, condescending or otherwise unsolicited manner. Twitter first put these users on notice in May […]

Home Office Set Up for Webinar and Teleconference whilst respecting the lockdown due to the corona virus outbreak
  • Media

The Virtual Conference Network Launches In Australia

The Virtual Conference Network, an Australian-founded disruptive alternative to video conferencing, has today launched to provide risk mitigation, improved flexibility, new post-event revenue streams, and optimal cost-effectiveness to conference organisers, business leaders and peak bodies. With over 20 years of first-hand experience with the high-risk and costly ways of delivering traditional conferences, co-founders Alex Paine […]

Medallia Appoints Heather Paterson As ANZ Country Manager
  • Advertising

Medallia Appoints Heather Paterson As ANZ Country Manager

Medallia has appointed Heather Paterson as its new ANZ country manager to drive further growth across Australia and New Zealand. With a strong sales performance and leadership background, Paterson joins Medallia as ANZ country manager following more than seven years with leading SaaS financial technology provider, Intralinks, where she was most recently director for Asia […]

IAS And Channel Factory ‘Channel Science’
  • Technology

IAS And Channel Factory ‘Channel Science’

Integral Ad Science (IAS) today announced the launch of “Channel Science”, an industry-leading partnership between Channel Factory and IAS. The Channel Science solution helps advertisers to leverage both companies’ technologies through a single product to ensure their YouTube campaigns are brand-safe, brand-suitable, and performance-optimized.  More than ever before, advertisers are searching for ways to streamline their media buying and improve […]

by B&T Magazine

B&T Magazine
Playing
  • Technology

Google Presses Play On Programmatic Audio

If CV-19's given us anything, it's more podcasts than you could listen to in 1000 lifetimes. Monetise yours with this.

by B&T Magazine

B&T Magazine