Online advertising in Australia has continued to climb year-on-year with Q1 spending up 4.9 per to reach $2.2 billion.

The data, taken from the IAB Australia Online Advertising Expenditure Report highlighted video, mobile and classified advertising were the standouts.

Video grew by 15 per cent, mobile by 26 per cent and classified by 7 per cent.

While there was year-on-year growth for the first quarter, the report showed a decline in growth of 4.3 per cent from the previous quarter in 2018. This drop is consistent with previous years.

As the general display and search and directories segments contracted, classifieds grew 6 per cent in the March quarter 2019 compared to the December 2018.

This classifieds growth was experienced across all three reported sectors – recruitment, real estate and automotive.

Gai Le Roy, CEO of IAB Australia said, “There is little doubt that the advertising market is tough across all platforms, but within the breadth of digital advertising there were still bright spots.

“The classifieds sector again had a strong March quarter and the display market saw an increased share for government/political spend which will continue into the June quarter numbers. Yet again video continues to gain share in the display sector.”

Search and directories maintained its overall share of online advertising expenditure at 44 per cent to reach $977.6 million for the quarter, while classifieds reached $426.2m, a 20 per cent share of spend and general display advertising is now 36 per cent of spend at $799m.

Source: IAB Australia Online Advertising Expenditure Report

According to IAB figures, video represented the largest share of general display expenditure in March 2019 quarter at 46 per cent, followed by content, native and infeed at 35 per cent and standard display formats at 18 per cent.

Each of these segments has a component of mobile advertising expenditure with mobile advertising making up 66 per cent of total general display expenditure, an increase from the December 2018 quarter.

Media agencies were the preferred buying method for display advertising viewed on content publishers’ inventory with some 58 per cent bought via media agencies via an IO/ non-programmatic method, according to the report.  

Twenty-nine per cent of general display advertising was bought programmatically with either fixed CPM and guaranteed inventory (6 per cent) or with a variable CPM based on real time bidding via an exchange or private market place (23 per cent). The share of general display advertising bought programmatically decrease 5 per cent compared to the prior quarter.

Government’s share of general display increased to 5 per cent  from 3.1 per cent in the lead up to the May 2019 federal election.

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