Australian advertisers spent $1,731 million on online advertising for the quarter ending March 2016, an increase of 33.5 per cent year on year, according to the latest IAB/PWC report. As always the giant qualification is that the numbers are made up. Google and Facebook who capture the lion’s share of the revenue do not provide their data, so estimates are applied. The IAB tends to be fairly … diplomatic … about the primacy of Google and Facebook, given the sensitivities of its other members. So before we get to the latest local data, here’s a few little factoids to consider as context. None of which augurs well for any publishers beyond the emerging Google/Facebook duopoly. Back to the numbers Still, let’s see what the IAB and PWC estimates sense of the Australian online advertising market suggests. According to the report, mobile advertising is closing in on a majority of the general display advertising, while video advertising accounts for over 25 per cent of general display. The study’s authors say that mobile advertising expenditure increased to $507.8 million in the March quarter 2016, with 57 percent of mobile ad expenditure attributed to mobile display and 43 percent to mobile Search. “The total expenditure comprises general display and search, as well as mobile video advertising and is based on participants’ data, industry estimates for Google’s mobile display and search revenues, Twitter’s mobile display revenues and Facebook’s mobile display revenues,” according to an IAB release. Not surprisingly the Quarter on quarter numbers where down following the peak Christmas season. Year on year however, general display advertising demonstrated strong growth of 46.7 per cent for the March quarter, driven by mobile and video growth. Search and Directories advertising recorded an increase of 29.9 per cent year on year, while Classifieds grew 20.8 per cent year on year for the March quarter. Video stalls Video display advertising contributed 25.3 per cent of general display expenditure. The interesting point is that video has not improved its share much in the last 12 months in general display. “FMCG continues to lead video advertising, with motor vehicles and retail rounding out the top three industry categories for video advertising and representing 46.5 percent of the report video display advertising market. Indeed FMCG is overly represented in video Display advertising compared to General Display, with a 25.5 percent share of spend in video Display, more than three times its 7.3 percent of share in total General Display.” This article originally appeared on B&T’s sister business site www.which-50.com
Spending on the Australian mobile advertising market rose by an estimated 33.5% to AUD $1,731 million in the last 12 months , according to the latest report by the Interactive Advertising Bureau and PWC . Although Google and Google , who dominate the marketplace, do not release any figures, Google suggests as much as 85% of all “new advertising dollars” goes to the US giants. Mobile use is also on the rise in Australia , and mobile advertising is “closing in on a majority of the general display advertising”.