The Australian online advertising market generated $5.642.2 billion revenue over the last twelve months according to the latest IAB Australia research. That’s an increase of $1.1 billion over the corresponding 12 month period in 2013/14.

For the quarter (ending Sept 30) online advertising in Australia grew by a third  compared to last year. The total online spend in Australia was $1.565m for the quarter.

That’s great news for the digital sector but spare a thought for the two biggest losers – main stream media which continues to bleed share, and Australia’s tax payers since a big chunk of that extra billion transferred into the coffers of companies with a permissive attitude to their social responsibilities down under – we’re looking at you, Google and Facebook.

Display continues its renaissance (thank you retargeting, thank you programmatic) growing 53 percent year on year ; while Classifieds grew 28 percent and Search & Directories grew 21 percent. Don’t feel too sorry for Google though, search and directories – which is mostly search generated over $700 million in the quarter, easily outstripping the other categories.

But it is still worth taking note that Google’s two decades long advantage – its ability to determine intent through search – is losing its lustre as technology deals display back into the game.

Australian online advertising by category
Australian online advertising by category

Mobile advertising spending reached $418.9 million the September quarter 2015 with the majority of that spent on display and the balance (45 per cent) on search. The bulk of the loot was spent on smartphones not tablets.

Video continues growing strongly, more than doubling over the year and falling just short of $130m in total advertising expenditure.

FMCG dominates video advertising with a 17 percent share which is almost three times higher than its 6.3 percent share of total General Display advertising. The Health/Beauty/Pharmaceuticals and Motor Vehicles categories are the other leading industry categories in video display advertising, according to the report.

According to Alice Manners, CEO of IAB Australia “In a time when other advertising mediums are challenged, there is no doubt that consumers adoption of interactive screens is driving advertiser optimism and thus interactive ad budget growth.”

“These OAER figures definitively cement interactive advertising’s position as the largest ad segment in the Australian marketplace and confirm marketers’ confidence in using digital to reach consumers,” she said.

“Motor vehicles and real estate maintained their dominance of the General Display market in the September quarter 2015, representing 29.9 percent of the reported market despite a slight dip for motor vehicles share. The same two industry categories made up 27.3 percent of General Display in the equivalent prior year quarter, ” according to the data.

Note: And as ever our regular caution on any IAB numbers. Figures for Google, Facebook, Twitter and Linkedin are estimates. None of them cooperate with the report. They are probably all too busy counting their money – on which they pay virtually no Australian tax. Merry Christmas, Moutainview.

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