The Australian online advertising market grew at a slower rate for 2019 at 5.6 per cent to $9.3 billion according to a new IAB report. That’s compared to the full year in 2018 when spending grew 11.6 per cent. 

The IAB Australia Online Advertising Expenditure Report showed video advertising was the growth driver in the general display category with a 19.9 per cent increase year-on-year.

The general display advertising category maintained a steady segment share and growth of 5.1 per cent to reach $3.5 billion for the year and classifieds grew just 1.7 per cent to reach $1.7 billion spend in 2019. 

Gai Le Roy, CEO of IAB Australia said it should be no surprise to people in the industry to see a slowing of digital ad growth in 2019 as the whole market has seen media investments under pressure and the growth rate under half of what the market experienced 2018.

She said, “We have seen a further shift in video inventory dominating the overall general display category and standard display formats contracting by 16 per cent. 

“It was encouraging to see the travel advertiser category gain share following investment and development of travel content by a number of publishers.”

Search and directories growth slowed year-on-year to 7.7 per cent to reach $4.2 billion for 2019, the category still outperformed the market overall.

The report said 47 per cent of content publishers’ general display inventory was bought via media agencies using either an insertion order or another non-programmatic method. 

Of the balance, 29 per cent of general display advertising was bought programmatically with fixed CPM and 8 per cent via guaranteed inventory, while 17 per cent of all display advertising was bought directly from advertisers.

Content publisher’s video inventory was most regularly viewed on a desktop at 37 per cent, while viewing via connected TVs was 35 per cent and 28 per cent viewed via mobile video advertising. However, for the 2nd half of the year CTV overtook desktop as the leading device in terms of revenue. 

Quarterly results

For the quarter ending December 2019, there was a 6 per cent growth in the online advertising market from the prior year coming in at $2.4 billion.

Compared to the prior year, search and directories was up 6.2 per cent to $1.0 billion, general display grew 6.7 per cent to $941m and classified jumped 4 per cent to $418m.

LinkedIn
Previous post

NSW government launches consolidated website beta

Next post

Women are missing from the top of the ASX All Tech Index

Join the digital transformation discussion and sign up for the Which-50 Irregular Insights newsletter.