Advertisers spent more than $1bn online in a single quarter for the first time, according to the IAB's online ad spend report.
Spend has grown 25 per cent year on year and increased 4.6% on the previous quarter, according to the report produced by PricewaterhouseCoopers (PwC).
Display advertising was the biggest growth area in the third quarter of the year, ending September, reaching $295.6m – a 41% rise on the same period last year.
Search and display, at $527.4m, accounts for more than half (52%) of total online ad spend. General display stood at 29% and classifieds 19%.
Mobile advertising now accounts for 11% of the total online market at $110.7m. Within mobile, over half (58%) went on search. Spend is split fairly equally between smartphone (51.4%) and tablet devices (48.6%).
Video ad spend doubled in the quarter compared to the previous year, reaching $43.1m for the quarter, accounting for 15% display advertising market.
Alice Manners, CEO of IAB Australia, said the report shows the health of the online ad market is “robust” adding that the IAB expects the online ad market to account for 30% of total ad spend by the end of this year.
She said: “Digital is now an accepted and integral component of advertising and is being embraced by a broad range of advertisers. As advertising formats and approaches evolve and our ability to deliver full transparency and accountability continues to improve, there is no doubt that growth will continue.”
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