IAB: Online advertising spend $7.6b in FY2017

Continued double-digit year-on-year growth

• Continued double-digit year-on-year growth
• Mobile advertising now over 50% of total display market
• Video represents a third of total display market

The Australian online advertising market has once again delivered double-digit growth figures increasing by $799 million to reach $7.6 billion for the full financial year ending June 30th 2017, a 11.7% increase over the prior financial year.

The data from the latest IAB/PWC Online Advertising Expenditure Report reveals that all online advertising categories experienced double-digit growth in 2017:

Category highlights

General Display: Mobile represents over 50% of display dollars for the first time, whilst video advertising is rapidly increasing its share, up 49% to $0.9b – a third of the total display market.

The auto category was once again the number one display category in 2017 and saw the largest year on year growth, increasing from 17% of category share in 2016 to 18.5% in 2017.

Automotive, along with Real Estate and Retail, account for 41.1% of the General Display advertising market.

Classifieds: The category continues to grow faster than other global markets due to the strong local Australian pure plays. Classifieds grew more than Display and Search, up almost 15% year on year.

Mobile advertising highlights

Mobile advertising expenditure now exceeds $2.6b, an increase of $641m (or 32.7%) compared to 2016. Of this $2.6b expenditure, 46% was attributed to mobile search and 54% to mobile display. 70% was attributed to smartphones and 30% to tablets.

Video advertising highlights

Video advertising now accounts for $894.4m of expenditure, up $294.4m (or 50%) compared to the previous year. It now makes up 32.9% of General Display advertising expenditure, compared to 24.3% in 2016.

“As mobile and video advertising continues to drive the growth in online advertising, IAB Australia is committed to helping brands, agencies and publishers improve their understanding of the mediums,” said Vijay Solanki, CEO of IAB Australia.

“During the last quarter alone, the IAB Video Council has published its inaugural Connected TV White Paper and the Video, Audio and Mobile Councils have published new Glossary of Terms to equip marketers with a common understanding of metrics and terms – with much more to come before the end of 2017.”

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