Australian online advertising market outgrows UK, US

Rachael Micallef
By Rachael Micallef | 26 May 2016
 

Australia’s online advertising market saw a 33.5% boost in its March quarter 2016 results, and grew at a stronger rate than overseas rivals year-on-year.

The IAB/PWC Online Advertising Expenditure Report found that for calendar year 2015, the Australia market saw a 25% lift in year on year growth, compared to 16% growth for the UK and 20% for the US. The rates of growth for both video and mobile were also stronger in Australia than the US or UK. New Zealand saw year on year growth of 31%.

The market has seen that growth continue more recently, with 2016 first quarter results showing that online advertising expenditure reached $1,731 million, a 33.5% boost year on year.

It also found that mobile advertising is close to reaching 50% of general display advertising, and video more than 25%.

PwC executive director Megan Brownlow says: “After a busy Christmas retail season, the first quarter of the calendar year is usually quieter in ad spend. Digital, however, still grew overall. This goes to show the central role and increasing regard in which digital is held by many marketers and agencies.”

Mobile advertising expenditure reached $507.8 million in the March quarter, with 57% of mobile ad expenditure coming from mobile display and 43% to mobile search.

Similarly to results in the same quarter of 2015, 25.3% of general display expenditure was attributed to video display advertising.

By brand, FMCG continues to lead video advertising, with a 25.5% share of spend in video display, followed by motor vehicles and retail, representing 46.5% of the video display market in the report.

In the general display market in the March quarter, motor vehicles and real estate were the largest spenders, increasing spend from 28.5% to 31.2%.

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