Online Advertising Expenditure Exceeds Television For The First Time

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Posted by luke on

The IAB Online Advertising Expenditure Report is out and it marks a landmark year for Online Advertising in Australia. For the first time, online advertising expenditure exceeded free-to-air Television advertising revenue. In the six months ended 30 June 2013, total online advertising revenues came in at $1,882.6 million compared to Television revenues of $1805.4 million. And that was just one of an impressive range of numbers for online advertising.

Year on year growth in the June 2013 quarter clocked in at an impressive 15.7%. While the total online advertising market grew to $3.6 billion for the 2012-13 period. Even more impressive was the growth in mobile advertising. Revenues grew by a whopping 161.3% year on year for the June 2013 quarter.

Who's spending what and where.

Search and Directories continues to be the biggest, and fastest growing, category of online advertising. In the twelve months ended 30 June 2013, Search and Directories accounted for 53.8% of online advertising expenditure. General Display and Classifieds were 26.5% and 19.7% respectively.

The biggest spender by far were Motor Vehicle Manufacturers, with display advertising for the industry growing by 53.6% year on year and accounting for 15.5% of online advertising expenditure. Finance, and Computers and Communications were the other two dominant industries taking the second and third places respectively. While retail came in at fourth place.

A notable highlight was the superannuation industry embracing digital platforms. Superannuation display advertising grew 228.4% year on year in the June Quarter 2013. Though it must be noted this was of a low base.

Small screen, big impact.

Though small in screen size, mobile advertising racked up some big numbers. The Mobile Advertising market almost tripled in the twelve months ended 30 June 2013 compared to the prior financial year. Total display and search Mobile Advertising expenditure was around $138.2m in the twelve months ended 30 June 2013, almost triple the Mobile Advertising expenditure in the prior financial year.

Video grows too.

Another notable performer for the year was online video. Video display advertising for the June Quarter 2013 was $35.7m, an increase of $8.1m (or 29.5%) on the March Quarter 2013 and $12.8m (or 56%) on the June Quarter 2012.

Clearly these are big trends in online advertising and they point to what lies ahead for the advertising and marketing industry. The fact is, we’re spending a lot more time online than we ever did, and where consumers go, the advertising dollars follow.

For a more detailed look at the numbers and what they mean check out the IAB Report.
It’s a must read.

Source: PricewaterhouseCoopers, IAB Online Advertising Expenditure Report.
Quarter ended: 30 June 2013.

Topics: Trends Online

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