SYDNEY: Online advertising spend has soared to new highs in Australia to reach A$6.8bn for the year ending June 30th 2016, according to new figures from the Interactive Advertising Bureau (IAB) Australia.
The latest IAB/PwC Online Advertising Expenditure Report revealed online adspend jumped almost 30% in the past financial year, the biggest annual uplift for five years, driven by increased investment in display advertising and the ongoing rise of mobile and video options.
Aussie marketers appear undeterred by the ongoing debate around display ad effectiveness and ad blockers because there was a 43% increase in display advertising spend from 12 months ago.
This was the largest growth in the vertical since the inception of the report and display now accounts for around A$2.5bn in adspend. (For advice on building more effective display ads, read Warc's report: How Quartz beats ad blockers by building better ads.)
Classified and Search/Directories spend also experienced double digit growth, claiming 21% and 24% increases respectively to A$1.2bn and A$3.1bn.
Mobile and video, two components of the display total, recorded the highest year-on-year growth across all online adspend.
Mobile is now pushing A$2bn in investment annually, up a huge 72% from last year as Australia's smartphone-driven engagement continues.
Mobile is also driving growth in both the display and search categories as marketers seek to target consumers on the go – mobile expenditure was split with two-thirds targeting smartphones and 33% towards tablets. Meanwhile, video spend was again a fast mover, reaching A$600m, up from A$388m in 2015.
Real estate, automotive and retail were the top three categories for online spend in the past 12 months, with automotive remaining the largest category spender by market share at 17%.
However, real estate is on the rise as the housing market booms in metro suburbs, and the category leapt to 13.2% market share from just under 11% a year ago.
Data sourced from IAB; additional content by Warc staff