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IAB Australia

Online Advertising Market Grew 17.1 percent year-on-year to $1,067 million in March quarter 2014

Published on Tuesday, 27 May 2014  in the category IAB Press Releases General display showed strongest growth, with a 27.5 percent increase

Data released in the latest IAB / PWC Online Advertising Expenditure Report has confirmed that the online advertising market continues to grow, reporting 17.1 percent year-on-year growth for the quarter ending 31st March 2014 and total expenditure for the quarter of $1,067 million. General display advertising showed the strongest growth, with a 27.5 percent increase, followed by search and directories, with a 16.8 percent increase. The PwC data supports the recently released CEASA report which attributes 30 percent of all advertising spend in 2013 to digital, ahead of both free to air television and newspapers.

Mobile advertising maintained its robust growth, representing 21.5 percent of digital display revenue and 17.1 percent of search revenues for the quarter. Video advertising also enjoyed healthy double digit year-on-year growth of 55.7 percent, and represented 14.3 percent of digital display dollars for the quarter. Classifieds also grew by 4.4 percent since March, 2013.

"Strong data for both mobile and video is great news, but not unexpected," said IAB CEO, Alice Manners, "and I anticipate continued growth for both platforms. To this end, both our Mobile Advertising and Video councils will continue their efforts to promote and support these markets."

Motor vehicles represent the lion's share of industry category share with 20.7 percent of display spend, followed by finance with 10.7 percent and real estate with 10.4 percent; a record high increase for the latter from 8.5 percent for the same quarter in 2013.

Retail rose to its strongest position in terms of category share in the December quarter 2013 and maintained its buoyancy in the March Quarter 2014 with 9.3 percent, up from 7.3 percent and is ahead of Entertainment & Leisure and Computers & Communications.

"The March quarter is always slightly softer than the strong December quarter, however, it was pleasing to see strong year on year results," explains IAB Director of Research, GaiLeRoy. "Early indications are positive for the current quarter, particularly with a lot of activity in the video ad space."

[IAB Members can download the full report here]


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