Online ad spending tops $5 billion in the past year: IAB

By Lucy Carroll | 15 October 2015
Alice Manners, CEO of IAB Australia

Local online ad revenues have surged almost 20% in the past year, with all internet ad segments posting double digit growth, according to new research from from IAB and PwC.

The latest Online Advertising Expenditure Report (OAER) shows the Australian online ad market has grown by $870.2 million from last financial year to hit $5.3 billion, with mobile advertising increasing by a massive 84% to reach $1.1 billion for the past financial year.

General display and classifieds are dominating, with 35% and 23% year-on-year growth respectively.

Video advertising – which now makes up 16% of all general display ads – almost doubled to reach $389 million for the past financial year. Video ads are proving to be most popular with FMCG, retail and motor vehicle sectors.

“Consistent year-on-year double digit growth over the past decade is testament to the rewarding relationship marketers are building with consumers through interactive media, and shows the vital role interactive advertising now plays in the marketing mix,” Alice Manners, CEO of IAB Australia, said.

“This research and the latest CEASA data confirm interactive advertising’s position as the largest advertising segment in Australia."

IAB Online Advertising Expenditure Report – 30 June 2015, online ad segments.

In the June quarter, total online advertising reached $1.4 billion, an 11.5% increase from the previous quarter.

During the past year, there has been an obvious shift in expenditure across sectors with general display holding the lion's share at 33%, mainly due to growth in mobile and video ads. Mobile ads are dominated by smartphones, holding a 66% share, with tablets sitting at 34%.

According to the latest CEASA analysis, for the six months to June, online advertising accounted for 41% of total advertising revenue, up 36% on the last report report.

Auto advertisers remain the largest spenders in general display, with real estate following and finance decreasing its category share to 9.6% for the year. 

IAB Online Advertising Expenditure Report – 30 June 2015, online ad spend.

Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at

Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.

Read more about these related brands, agencies and people

comments powered by Disqus