Online advertising spend in Australia reached $3.6bn in the past year, up 14% and overtaking TV for the first time, according to new figures.s
The figures, from IAB Australia and PricewaterhouseCoopers, indicate that over the first six months of the year total online advertising spend exceeded free-to-air television spending for the first time since the report began in 2002.
According to the IAB, online expenditure was valued at $1.88bn against $1.8bn on television.
The data showed double digital growth in all the categories it measured:
• Mobile outpaced all other formats, achieving 190% growth year-on-year
• Search and Directories grew 18% year-on-year
• General Display grew 12%
• Classifieds grew 10%.
The IAB found that internet advertising revenues in Australia totalled $972 million in the quarter ending 30 June 2013, an increase of 15.7% from the $840 million in June quarter 2012 and a 6.7% increase from $911 million in March quarter 2013.
Over the April-June quarter, general display advertising accounted for 27.3% of all online advertising ($265.6m), while classifieds advertising represented 18.9% ($183.3m) and search and directories 53.8% ($523m).
Video display advertising is also on the rise, and increased by 56% year-on-year in the June quarter to $35.7m. In total, online advertising over the most recent quarter totalled $971.9m, up just over 15% year-on-year.
Mobile advertising revenues reached $46 million for the June quarter 2013, of which 58% was tablet based.
The auto sector showed it is rapidly embracing digital display, with motor vehicles the highest spending advertiser industry category in the quarter ending June 30 2013 at 19% share – an increase from 14.7% in the previous quarter.
Gai Le Roy, Director of Research for IAB Australia said: “Achieving $3.6 billion in online advertising revenue in a challenging advertising environment is a great result for the industry. The double digital growth in each sector is exceptional. As expected mobile advertising was the star performer as advertisers move their budgets to start matching consumer behaviour, and video advertising growth continues to impress as marketers target the 13 million Australians streaming video content each month.”
“The report is the fifth to be prepared under the ‘new approach’ introduced in the June 2012 report,” said Le Roy. “This approach means data collected from industry participants has been supplemented by estimates for Google display, video and mobile advertising as well as Facebook display and mobile advertising; while the prior methodology for estimating Google search has been refined.”
Non IAB members can download an executive summary of the report here