The Australian online advertising market grew at a slower pace in 2022, up 9.1% to $14.2 billion, according to data released in the IAB Australia Online Advertising Expenditure Report (OAER) prepared by PwC Australia.
This represents a marked change from the growth rate of 36% reported in 2021.
Second half growth in 2022 was weaker at 4% compared to15% in the first six months.
All categories grew with general display up 7.7% ($5.5bn), search and directories 8.5% ($6.2bn) and classifieds increasing by 14% ($2.5bn). Wideo advertising was 12% higher at $3.3bn.
For the first time, the report also included digital audio data thanks to an industry collaboration between IAB and Commercial Radio & Audio.
Gai Le Roy, CEO of IAB Australia, said: "Despite this slow down, we are seeing encouraging signs including automotive advertiser’s share of display advertising returning to levels not seen since early 2021."
The top five advertiser categories in general display advertising remained consistent year on year, with retail, automotive and FMCG stable, entertainment share increasing slightly and finance share decreasing slightly.
The share of content publishers inventory bought via an agency insertion order has increased from 42% in 2021 to 44% in 2022. Programmatic guaranteed deals share increased from 13% to 15% driven in particular by video investment.
December 2022 Quarter Data:
- $3.639bn with overall growth, softening to 1.2% against the same quarter in 2021.
- Classifieds share of the digital ad market dropped 3% points compared to the previous quarter, reflecting changes in the job and real estate markets.
- Video investment represented 60% of all display advertising, up from 56% compared to the same quarter in 2021.
- Retailers’ investment in digital display advertising represented 18%, up from 15% against the same quarter in 2021.
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