The online ad market slowed down in quarter three but still grew 10% year-on-year, defying the general trend of a sluggish ad environment, according to the Interactive Advertising Bureau.
The IAB/PricewaterhouseCoopers’ Online Advertising Expenditure Report showed the market was worth $813.2 million dollars in the three months to September. Echoing CEASA figures released in September, the online market is now slated to overtake both newspaper and TV advertising spend in 2013.
General display grew a narrow 1% in Q3 YOY fuelled by the automotive and finance categories while classifieds increased 7%. Search and directories advanced a healthy 15% in the three month period while still maintaining its dominant 53% share of online spend.
Growth in mobile advertising continues to skyrocket as it increased 190% YOY and 25% on the prior period to $22 million. Video advertising grew to $20.7 million from $18.5 million YOY while email advertising almost halved from $10.5 million to $5.8 million.
The retail industry increased its investment in online advertising as the category’s share of expenditure grew to 7.2% from 6.5% on the prior period.
IAB chief executive Paul Fisher said: “Double digital growth in the media and economic climate of the past 12 months bucks the trend across the broader media industry. While growth has slowed in digital this past quarter the outlook for the Christmas quarter looks encouraging.
“Our work as an industry to improve online behavourial advertising technology and deliver better audience and campaign measurement tools has resulted in more ‘brand’ focused advertising display formats and a clear and growing confidence in the medium by marketers.”
PricewaterhouseCoopers partner Maria Martin said: “While the online advertising sector is settling into strong and sustained growth, it’s clear that the search by marketers for new ways to engage with consumers is fuelling mobile advertising growth rates.”
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