Total online advertising spend continues to grow, with first quarter expenditure at $1.86 billion, up 7.2 per cent year on year, according to data from the IAB and PwC.

Data from the Q1 IAB PwC Online Advertising Expenditure Report shows mobile continues to grow exponentially.

The report doesn’t detail the dominance of Facebook and Google in the local market. However in their home market the digital giants now take 85 per cent of new online advertising dollars in the US.

Back to Australia and mobile expenditure was $653 million in Q1, up 29 per cent year-on-year. Mobile continues to represent more than 50 per cent of the display market (53.5 per cent); a significant increase from the 21.5 per cent it represented just three years ago.

This reflects consumption habits — in March 2107, 63 per cent of digital time was spent on smartphones in Australia, as well as the continuing maturity of mobile advertising campaigns.


Video also continues to increase its share of advertising expenditure. It now accounts for 36.3 per cent of display, a significant 11 per cent share increase from just three years ago when it accounted for just 25.3 per cent.

Within the video category FMCG and retail account for 30 per cent of total video spend and are the top two video advertiser categories. The real estate category which has a high general display spend (accounting for 12.1 per cent of general display) has yet to fully embrace video which suggests considerable upside for future reporting quarters, the IAB said.

Looking at display, auto continues to dominate the category. It has been the number one display category for five years and now accounts for 20.3 per cent of the display market.

“The online advertising marketing continues to surpass historical year-on-year figures across all categories,” said Vijay Solanki, CEO of IAB Australia.

“Significantly, mobile continues on its steep growth trajectory, further increasing its share of general display advertising both quarter-on-quarter and year-on-year. This speaks to both the ubiquity of smartphones within Australia and improved mobile advertising technology and creative as brands better understand the challenges and opportunities the platform offers. Our numbers also dovetail neatly with some of the headlines from this year’s Mary Meeker report, especially the global growth of mobile.”

PwC Online Advertising Expenditure Report

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