Is the growth in online advertising slowing downunder?

Mobile advertising reached $1.15 billion during the March quarter, up five percent increase on last year, a surprisingly slow gain.  The video advertising market meanwhile continues to deliver robust growth increasing  79 per cent year on year to reach $77 million (still a small portion of the total though). The figures are contained the latest IAB report produced by PwC.

Online advertising is  comfortably Australia’s biggest category soaking up 36 per cent of advertising compared to Free to Air television which takes about 27 per cent according to the Commercial Economic Advisory Service of Australia (CEASA) . However that figure is actually a decline of one per cent of CEASA’s report released in September last year, although still up strongly on the figures from May 2014.

According to the IAB, “Mobile advertising has continued its steady climb, with one in three general display dollars being spent on mobile display advertising – an increase of 13.5 percent year over year for the quarter to reach $230 million.  The OAER shows this growth has been driven by smartphones, with phone based advertising revenue increasing 20 per cent year over year, while tablet revenue grew six percent in the same period. Overall mobile advertising expenditure now makes up 20 per cent of total online advertising expenditure.”

Some description

CEO Alice Manners focused on the video result in a statement accompanying the release of the data. “The increase in video advertising expenditure is a reflection of the overall growing market understanding of the consumer’s desire to access content across a range of screens, all the time and at any time. The recent IAB NewFronts in New York saw a record number of major players unveil their new content offerings to an industry audience of unprecedented scale.  It’s clear the industry is heavily investing in video content and we expect to see this continue to translate into ongoing growth in video here and in every other major market worldwide.”

The study also suggested that general display sector is under going something of a renaissance and has now reached its highest share since IAB Australia record keeping began in 2003. General display took 34 percent of the total online advertising spend ($388 million) for the March quarter. 

Search (which is mostly shorthand for Google) was still the biggest category at $504 million representing 44 per cent of the total online market. (Just imagine all those extra nurses and teachers we could hire if Google paid its fair share of tax, but I’m sure Sergy Brin needs the money more than our sick kiddies under resourced state schools.)

Classifieds captured 22 per cent, an increase of 18 per cent year on year to $255 million for the March quarter.

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