September quarter sees 33% growth for digital advertising

Sarah Homewood
By Sarah Homewood | 14 December 2015

The September quarter has been a good one for online ad spend, with the IAB/PwC Online Advertising Expenditure Report (OAER) showing online advertising has risen again to deliver 33% year-on-year growth.

For the quarter ending 30 September, ad spend online reached $1.565 billion, with general display advertising leading the sector hitting 53% year-on-year growth. Display was followed by classifieds, which grew 28% and search and directories grew 21%.

The report also found that mobile advertising expenditure increased to $418.9 million in the September quarter, with 55% of mobile advertising being attributed to mobile display and 45% to mobile search. Smartphones now hold 67% of the device category share and tablets at 33%.

CEO of IAB Australia, Alice Manners, said: “In a time when other advertising mediums are challenged, there is no doubt that consumers adoption of interactive screens is driving advertiser optimism and thus interactive ad budget growth.

“These OAER figures definitively cement interactive advertising’s position as the largest ad segment in the Australian marketplace and confirm marketers’ confidence in using digital to reach consumers.”

The OAER numbers also found that video advertising also maintained its strong performance, recording an increase of 107% year-on-year to reach $128.9m of the total advertising expenditure.

According to the report, FMCG now dominates video advertising with a 17% share which is almost three times higher than its 6.3% share of total general display advertising.

The Health/Beauty/Pharmaceuticals and Motor Vehicles categories are the other leading industry categories in video display advertising.

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