Australia's digital advertising market is now worth $8.8 billion

By Melina Gouveia | 12 March 2019
PwC IAB report

The Australian online advertising market hit $8.8 billion in  2018, up 11.6% from 2017, according to the IAB Australia online advertising expenditure report published by PwC.

The continuing shift in consumer media consumption drove the strong result with Australians spending nearly 100 hours a month on desktop, smartphone and tablets and almost five million people accessing internet content on their TV screens daily. 

Gai Le Roy, chief executive at IAB Australia, says the report highlights how marketers have continued to reinvest their budgets in a range of digital advertising options. 

The general display advertising category in 2018 reached $3.3 billion for the year, a 15.8% increase on t2017. This places the category at 37% of total online advertising.  

Search and directories hit $3.4 billion for 2018, a 9.2% increase, and classifieds rose 9.5% to $1.6 billion spend.
With connected TV inventory now a significant part of the digital video market, content publishers provided, for the first time, data points breaking down revenue sources. 

In the fourth quarter of 2018, 23% of video advertising revenue for content websites was generated by connected TV inventory, 48% via desktop, and 29% via mobile.   
Megan Brownlow, Partner at PwC, says video again is the bright spot, making up 42% of the general display market and up 26.2% from 2017.

Video advertising grew 26.2% to $1.4 billion in 2018, as brands continue to seek premium environments in which to showcase their offerings. 

The report notes the use of technology and strength of content will be pivotal in differentiating publishers in connected TV advertising. 

Mobile advertising drove strong growth in both general display and search and directories, reaching $4.2 billion, a 34.9% increase from 2017. 


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