Mobile ad spend jumps 28% in Australia

Anne Freier | September 3, 2019

Mobile Advertising

The total share of mobile advertising including search and display grew by $1 billion to $4.6 billion in Australia – a rise of 28.4% – according to the latest Advertising Expenditure Report by the IAB Australia.

5G technologies could boost further growth in the near future.

Video continues to be one of the fastest-growing formats and accounts for 44% of total display.

“We are seeing steady digital growth within a universally challenging advertising environment,” said Gai Le Roy, CEO of IAB Australia.

“When we look some of the notable drivers of this growth, it’s clear that small and medium business investment in digital is growing at a higher rate than traditionally larger advertisers. There are also some key category shifts.  Automotive is again the largest advertiser category for display, but for the first time it is also the largest video advertising category – taking over from FMCG as their spend softens.”

Overall, digital ad spend in 2019 increased by 7.1% to $9 billion, marking a slowdown from 11% in 2018.

Forty-five per cent of spending went toward Search and Directories, 37% to General Display and 18% to Classifieds.

“It is proven that a slower advertising market offers the brave marketer an opportunity to invest in order to take market share so it will be interesting to see how vertical category investment unfolds over the medium term,” Le Roy added.

During Q2, the total online ad spend was up 5% year-on-year to $2.3 billion. Video represented the largest share of general display with 48%, followed by content, native ad infeed at 34% and banner/standard display formats at 17%.

Mobile advertising made up 58% of total general display expenditure, a rise from 56% in Q2 2018.

The report also details that 49% of general display ads viewed on publisher’s inventory were bought via non-programmatic or insertion methods, down from 58%. A third of general display ads were bought programmatically.

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