Ad revenue in Australia reached $2.2 billion during the third quarter 2018, up 13.2% from Q3 2017, according to the latest Online Advertising Expenditure Report from the Interactive Advertising Bureau (IAB) and the PwC.
The growth was driven by video and native digital ad formats, representing a solid quarter-on-quarter growth of 1.6% from Q2.
Mobile ads generated 62% of total general display expenditure in the country, up from 56% in June.
Overall, search and directories were responsible for the largest proportion of the online advertising market at 44%, followed by general display (37%) and classified ads (19%).
The distribution of revenue across general display was fairly steady with video inventory representing 40% of display ads at $329 million – a rise of 18% compared to 2017.
Meanwhile, native and content as well as in-feed ad formats rose to a 37% share of total display advertising. Banners and standard display formats now make up 21% of the total share.
The increase in video ads are in line with increased video consumption on digital devices.
“Marketers are continuing to reinvest in digital advertising targeting people where they are spending record levels of time-consuming media,” said Gai Le Roy, CEO of IAB Australia. “Adult Australians are now spending over 90 hours per month on their devices and this is creating new advertising opportunities that can help businesses grow.”