IAB: Online Advertising Growth Flattens
Economic seasonal factors and an unusually high rate of expenditure in 2022 have resulted in online advertising expenditure slightly declining according to data released today in the IAB Australia Online Advertising Expenditure Report(OAER) prepared by PwC Australia.
Total advertising expenditure for the quarter ended 31st March 2023 reached $3.426 billion, an 0.8 per cent decrease on the same quarter last year. By contrast, the quarter ending 31st March 2022 recorded an 18.5 per cent increase.
Compared to the quarter ending March 2022, search and directories remained resilient with 1.9 per cent year on year growth, reaching $1.576 billion, while general display reported a 2.7 per cent decline ($1.227 billion) and classifieds expenditure dropped 3.9 per cent year on year ($623 million). Video advertising outperformed general display reporting eight per cent growth on the comparative period.
Audio was the fastest growing category of general display advertising with a 13 per cent increase on the comparative quarter to reach $51.9 million. Within audio, podcast increased its share of total audio expenditure by two per cent, recording 20.7 per cent year on year growth.
Travel entered the top five general display industry categories for the first time since December 2019, joining retail, automotive, finance and entertainment.
Gai Le Roy (lead image), CEO of IAB Australia commented: “It is no surprise that ad spend is back slightly on bumper levels in early 2022 with marketers taking a cautious approach, however digital investment and digital media consumption continues to outperform the rest of the media market. It is a delight to see the travel category share of the general display market the highest since prior to COVID, with marketing for domestic and international flights and destinations targeting Australians who are excited to hit the road again.”
The share of content publishers inventory bought via an agency insertion order continued to increase reaching 48 per cent for the quarter, while inventory purchased direct dropped slightly to 14 per cent and the balance of inventory was bought programmatically (guaranteed deals and RTB/PMP).
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